There is no doubt that the fallout from COVID-19 has affected the property market and if you listen to the media, everyone has their own expert opinion. Reports on the massive decline in Auction Clearance rates are not a reliable factor on which to base your buying or selling decisions. The Government’s ban on public auctions resulted in more than half the properties meant to go to Auction in April being withdrawn which distorted the latest clearance rates. The majority of sellers reverted back to good old private treaty (for sale with an asking price), and others have pivoted to online auctions.
Although we are firm believers that Auctions are the most effective and transparent way of selling property, many buyers find them extremely stressful. The recent increase in Private Treaty sales is therefore a welcome relief for buyers and just one of the reasons why now is an opportune time to buy. However with the latest news that the ban on public Auctions and Open Houses has been lifted, it means before long things will be back to some normality. For those who are fortunate enough to be in the position to take advantage of current conditions, we have put together our Top 3 Reasons why Buying During COVID-19 is an opportunity not to be missed.
1.Less Competition
- An uncertain future combined with a lack of job security has caused many buyers to withdraw from the market to sit back and wait. In the meantime, some areas of Sydney are experiencing good stock levels waiting to be sold, and others are quite low. Wherever you’re planning to buy, the current lack of competition means you have a higher chance of securing your dream home within a reasonable time frame and without the frustration of constantly missing out
2.Historically Low Interest Rates
- With interest rates at an all time low and banks offering some great deals on variable and fixed rate home loans, there is no better time than now to take advantage of these conditions.
3. Off Market Opportunities
- Off Market Sales are becoming more and more popular with sellers as there is minimal marketing outlay. It’s a good idea to make sure you are registered with plenty of agents in your local area and keep in touch with them on a regular basis to stay top of mind for any future off market possibilities. If the timing is right, you may have the opportunity to inspect the property before any other buyers are contacted. If you need help with this, we have a network of agents we frequently work with.
In addition to the above, something to also consider is there is a good possibility the Government will finally agree to abolish stamp duty in an attempt to breathe some life back into the property market. If stamp duty is abolished, it would be wise to get in early as this will create an influx of buyers to the market.
Once businesses return to normal trading and people are back at work, we expect there to be a stampede of buyers back to the market (not exaggerating!). Exactly when this will be, nobody knows at this stage. However based on past experience, what we do know is that prices will continue to rise post COVID-19 and you would do well to secure your dream home now instead of waiting.
If you would like help with selling your current residence and buying your next property, please don’t hesitate to contact us on 0411 522 233 or email info@innovativeproperty.net.au.
