Real estate services still in demand
Since the COVID-19 lockdown, Links Property, like many other agents, has still been transacting.
Astute buyers are still buying, and in some ways it’s the perfect storm if you are looking to purchase.
Lynne Hayden from Links Property said in their past eight sales, some had been falling short on price by 3 per cent at most.
“In most cases they are achieving the agreed reserve set at the start of the campaign.
“As long as the property is priced correctly to meet the market, it will sell.
“Lots of our vendors and buyers are asking if the market will fall.
“Unlike now, previous downturns in Australia have primarily been financially-led, which is the significant differentiating factor. “
“In light of that, she said there were a number of reasons why Australians should not expect to see house prices in freefall:
- The coronavirus pandemic will be short lived
- The Australian finance system has been equipped to handle non-performing loans and offer mortgage payment deferrals – at least in the short-term
- The Reserve Bank of Australia is providing $90 billion to the banks at a rate of 0.25 per cent to ensure a cheap line of credit is available throughout the crisis
- The RBA will fund the banks at that low rate over three years and provide additional funding if the banks increase lending to small and medium-sized businesses.
“Some sectors will boom and experience business growth like our local paint store and gardening centre who are achieving record sales,” Ms Hayden said.
“Despite the broader downturn we have had some ripper sales, selling two more properties last week and rolling out several new listings a week; people still want to transact.
“It’s too early to definitively call the market, but we do know that there will be winners and that there will be losers.”