The July Property Market Update.
Hello, and thank you for joining us for this month’s property market update.
Firstly, I would like to start by hoping that this video/blog finds you, and your family, all safe and well, during this surreal moment in time we are all living through.
The Covid-19 pandemic has certainly changed the world in dramatic ways.
We have all been introduced to new terms, such as ‘flattening the curve’ and ‘social distancing,’ statements that pre-March were absent in our day to day conversations. Today, they have become our new normal.
So how has Covid-19 affected the property market?
Of course, at the outset of the pandemic there were catastrophic predictions of what was going to happen to house prices and the demand from buyers and sellers to exchange properties.
Fast forward four months, and much to the surprise of the media outlets & reporters who seem to always exaggerate and always get it wrong when predicting future trends, the property market has defied those predictions and has withstood the economic uncertainty.
Australians have demonstrated once more that they have an absolute love affair with property, and whilst it is not business as usual, the property market has shown extreme resilience over the last 4 months.
We believe that that love affair will continue well beyond Covid-19 and we will always see home buyers and investors purchase property, confident in the knowledge that property will always be a haven for preserving and growing wealth.
So, how has the market performed in the last 12 months and more particularly in the last quarter of the 2019-2020 financial year.
At a glance, we have seen the combined capitals annual property growth increase by a substantial 12.5 %, bringing the new median house value to $641,671.
Sydney outperforming all states with an annual increase of 16.7%, with a new median value of $875,749.
Perth was the lowest performer but still grew by a modest 1.6% to a new median price of $441,977.
On a national level, we saw the property market grow on average by 11.7%, with the new median home value of $554,741.
These extremely healthy gains were on the back of a national decrease in dwelling prices for the June quarter by 1.1% which we can safely attribute to the sudden disruption & lock down of the economy because of Covid-19.
What these figures have clearly demonstrated is that whilst we have seen a significant decrease in the volumes of properties coming to market and exchanged sales, house prices have remained resilient, and only modestly been affected during the Covid-19 crisis, and certainly nowhere near the levels as first predicted.
Fast forward four months, the market has now become accustomed to our ‘new normal,’ confidence has returned with eager buyers wishing to purchase, and sellers wishing to make a move. Since the last 45 days, our team has helped over 528 buyers and sellers with their property transactions which is up by 28% from our previous period.
The government has moved swiftly to soften the economic impact and talk of more stimulus packages being introduced beyond the initial September cut off are being tabled.
Interest rates are at their lowest on record and infrastructure and housing grants to first home buyers and construction projects will further fuel and stimulate demand.
However, we recommend that property owners should still be mindful that we are not out of the woods yet, and the road to economic recovery may be protracted.
Everyone’s circumstances are different, so if you are thinking of making a move, selling, and buying in the same market is the safest way to ensure your transition is economically sound.
No one has a crystal ball, but we encourage all property owners to get a property health check and home appraisal in todays market so they can make the best-informed decision moving forward in these uncertain times.
We also encourage everyone to get a home loan review as there are some great opportunities to switch to mortgage providers who are offering substantial savings to existing borrowers. For a complimentary review, please reach out to our Director of our Tango Loans division, David Fraser on 0411 519 937 and as he says, you may be pleasantly surprised as our tag line says, ‘Our Money Will Make You Dance.’
So as we wait to see how it all unfolds in the next three to six months and beyond, we would love the opportunity to assist you with your property goals.
The Eview Group is a network of over 300 individuals located throughout Australia, and when you list your property with one of our team, you list with all our team. ‘LIST WITH ONE, SELL WITH ALL.’
We proudly do things differently, have unique selling strategies and passionate about property management. Our goal has never been to sell or lease the most amount of homes, but rather sell and lease every home for more.
I hope you have found this post informative, and please reach out to myself or any member of our team to help you with any of your property needs.
Thank you, and from all our team, please stay safe.
Manos Findikakis – CEO, Eview Group
*Data Source – Core Logic