Property prices rise, defying COVID-19 crisis!

Property prices rise defying COVID 19 crisis 1028 1 - Property prices rise, defying COVID-19 crisis!


Australian residential home values have defied the global COVID-19 crisis recording price growth in March.

Yes, against the odds, the trend in housing values continued to remain positive with Corelogic confirming a 0.7% national lift in residential property values for the month. 

CoreLogic head of research Tim Lawless said, “Although Australia’s housing markets have begun to enter a period of disruption, they are coming from strong foundations.”

This positive growth trend has seen every capital city in Australia record a growth in the first quarter of 2020, a comforting confirmation of the current strength of the national residential market for concerned property investors unsettled by the COVID-19 crisis.  

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Market Expected to Cool over the Months Ahead

Buyers and Sellers are both expected to hit the pause button over the next few months whilst they wait for consumer confidence to return.  Analysts agree that whilst the property market has proven to be incredibly resilient despite the ever increasing pressures of the coronavirus pandemic, the fall of confidence and momentum was certainly being felt across the property market in the second half of March.

The implementation of government policy banning group open homes and onsite auctions, along with a sudden fall in property listings has resulted in an immediate halt to any momentum the property market was displaying.  It is now expected that these new unprecedented conditions, combined with a fall in market sentiment and a weaker economy, will impact the property market, but as to how much has analysts scratching their heads. 

"The housing market won't be immune to a drop-in sentiment and weaker economy, however the extent of the impact on dwelling values remains highly uncertain," CoreLogic's Head of Research Tim Lawless

Confidence Bolstered by Stimulus Packages and Bank Announcements

The volume of sales activity is expected to be reduced significantly over the coming month as sellers take a 'wait and see' approach, rather than a fear based sales approach.  This underlying sense that the storm will pass has certainly been helped by generous government stimulus packages and leniency from the banks for borrowers facing financial hardship.  These 'we're all in this together' measures have helped property owners draw on a feeling of strength and support rather than panic.  It is now expected that property owners will sit back and ride this storm out, then review their situation once buyer demand creates a rebound in the market.

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