IF I AM CONSIDERING SELLING , WHY SHOULD I GO TO MARKET NOW ?
SUMMARY
• Unemployment rate keeps rising nationally .
• Faltering jobs recovery weighed down by restrictions in Victoria .
• Westpac predicts prices to rise in 2021 .
Many of our customers want to know what ’ s happening in the Australian property market now . While we work in the now and use our real time market data , we know there are many risks to the economy in the future . We still believe now is a good time to come to the market . It was heartbreaking to read that more Australians joined the jobless queue in September . Australia ’ s unemployment rate rose slightly to 6.9 per cent in September after the economy lost 29,500 jobs in the extended COVID-19 lockdown , up from 6.8 per cent in August . Stage four COVID-19 restrictions in Victoria caused another 36,000 jobs to be lost in the state in September , bringing the total jobs lost to 72,000 since July . The RBA shifted its focus to the jobs crisis rather than inflation forecasts . broken ranks with the other big four banks to lay down his latest thinking as he expects the property market to get through the pandemic relatively unscathed before booming .
Last month Westpac reported that it expects mild ( five per cent ) dwelling price correction through to late 2021 to be followed by 15 per cent surge over the next two years . “ To date our view has been for a 10 per cent fall in prices nationally from the peak in April 2020 through to June next year . From that point we expected increases of around four per cent per annum over the following two years .”
Dr Lowe also said the central bank was now placing a greater weight on actual economic indicators such as unemployment , not forecast ones . The bank has forecast a 10 per cent unemployment rate by December . “ In terms of unemployment , we want to see more than just ‘ progress towards full employment ’. The Board views addressing the high rate of unemployment as an important national priority ,” Dr Lowe said .
“ Timing made a big difference - we had lots of interest and the price exceeded our expectations .”
So it ’ s been a wild ride for many market watchers this year who have predicted everything from 30 per cent price crashes to somewhat milder declines . The fact is , no-one knows for sure .
On the weekend , sellers Marcus Ward and Su Jing lauded the work their gun agent Ercan Ersan of Ray White Surry Hills had done throughout the campaign of 207 Corunna Road , Stanmore .
AMP Capital now expects headline unemployment to keep rising and peak around nine per cent or slightly less towards the end of the year when the participation rate increases as more people re-enter the labour market . NAB economists expect that outside of Victoria , where job advertisements are above pre-pandemic levels , further improvement is likely in other states .
So while things are grim for many people looking for work , one well regarded economist Bill Evans of Westpac has
“ Ercan recommended now was the time to sell to take advantage of low stock and that timing made a big difference - we had lots of interest and the price exceeded our expectations . Selling during COVID-19 actually made it exciting because it gave us the chance to take on the negative speculation and Ercan and the team helped us defy all of that speculation . Ercan ’ s communication was wonderful and he attracted such a variety of buyers which gave us the opportunity to pivot throughout the campaign - we ’ re very happy with the outcome .”
8 The information is general information only , not financial advice , and does not take into account your individual objectives , financial situation or needs .