Crisis history gives property investors hope!

Crisis history gives property investors hope - Crisis history gives property investors hope!

Crisis history gives property investors hope!  

Let’s not pull any punches, we are currently fighting two unprecedented wars. One war focussed on protecting the health of millions of Australians, plus another huge battle surrounding our national economy.

This is a crisis that no one alive has faced, certainly not at this scale. This unique situation has left analysts grasping for what effects it will have on all segments of our economy, including house prices. This has been made even harder to forecast due to the recent strength of the property market, with both Sydney and Melbourne recording around 65% clearance rates at auctions two weeks ago.  These sorts of clearance rates would typically highlight regions that are on track to experience around 10% growth over the coming year.  But a lot has changed in just two weeks.

Today many property investors are scratching their heads around forecasts on how the coronavirus crisis will affect property prices. With over half a trillion dollars being lost from the ASX in an investor bloodbath over recent weeks, why has the property market remained strong, and why aren't analyst raising alarm bells?

The forecasts that have property investors puzzled!

Banks - Crisis history gives property investors hope!

 As Featured : 11 March, 2020

Just a few weeks ago, even with a growing awareness around the imminent threat of the coronavirus, several leading market analysts were still forecasting strong growth in the national property market in 2020.  NAB chief economist Alan Oster was very optimistic stating that NAB's forecast remains unchanged with house prices expected to rise 7.5% this year in Sydney and Melbourne.

So why are some analysts reluctant to let go of their confidence in the property market over the months ahead?

An article distributed be Domain earlier this month warned that Homebuyers hoping recent falls in the Australian sharemarket will translate into a drop in property prices could be disappointed, if history is any guide. If you access the last 30 years, Australian residential property market has historically fared well against negative economic shocks.

Home value index annual growth rate 1 - Crisis history gives property investors hope!

'Black Monday' stock market crash caused a property investment surge!

One of the most quoted bloodbaths in the history of the stock market, that sets the bar for other stock market crashes to be compared created a global financial crisis and yet Australian property prices boomed.

Home value index annual growth rate 2 - Crisis history gives property investors hope!

House prices rose quickly after the GFC

The speed of the recovery to the Australian property market from the biggest financial crisis of modern times, the GFC, was spectacular.

Home value index annual growth rate 3 - Crisis history gives property investors hope!

Royal Commission into Banking was tipped to crash the property market!

The same v-shaped rebound has been experienced since the recent royal commission into banking firmly stopped the Sydney and Melbourne property markets in their tracks, and held back other emerging growth markets around the country.

Summary:

If history has told us anything it certainly tells us that we can't underestimate how resilient the Australian property markets is. Covid-19 will test the national market in ways it has never been tested before but at least property investors can potentially gain some comfort in knowing it has weathered many storms in the past and has proven to be incredibly solid.

big wealth shift cover mock - Crisis history gives property investors hope!

The BIG WEALTH SHIFT report

DOWNLOAD NOW!

If you haven't already downloaded my latest National BIG WEALTH SHIFT Report, here's the link.

This Report outlines the biggest single movement of wealth we have ever witnessed in Australia, and how property investors can profit.


a4 BSR cover mock up SEQ - Crisis history gives property investors hope!

SEQ Big Shift Report
- OUT SOON!

Keep an eye out for my upcoming SEQ Big Shift report where I'll break down a number of key elements that are creating a 'perfect storm' for informed property investors in certain postcodes within the emerging hot spot for property investors.


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