IF I AM CONSIDERING SELLING,
WHY SHOULD I GO TO MARKET NOW?
SUMMARY
• List now to sell in spring.
• Avoid potential risks that may arise in the market.
• Home values are protected now.
The Australian property market remains resilient. Over the
last 30 years we have experienced both economic and
political shocks and always come out stronger. We have
traded through the Global Financial Crisis, 9/11 and
now we are trading through the COVID-19 pandemic.
The property market is functioning at a high level with
very benign price adjustments if any at all.
All eyes will be on Canberra later this week as the Federal
Treasurer Josh Frydenberg unveils his economic update
and mini-budget on 23 July, ahead of the full document in
October. The government has already announced support
packages for the arts and entertainment industries, and
more help for the beleaguered tourism and aviation sectors
is likely. Despite the ramping debts and deficits, global
ratings agency Moody’s reaffirmed Australia’s AAA credit
rating last week, and maintained its “stable” outlook for the
country. Also this week, the International Monetary Fund
said Australia’s economy would suffer a milder than feared
recession as a result of the pandemic.
This is wonderful news but despite a rebound in jobs, the
unemployment rate has hit a 22-year high which means
the future remains very uncertain for an increasingly large
number of people.
By listing your property now, you would most likely
achieve a sale in early September, which historically has no
difference in median price to sales that occur later in the
spring and early summer. The key reason to list now is to
remove as much risk as possible as to what might happen
later in the year. There are many economists predicting
property prices will decline over the next year or so. As
mentioned earlier there are two basic fundamentals that
drive property prices, supply and demand. Many suggest
that supply will outweigh demand in the next six to 12
months and possibly longer, creating conditions less
favourable for sellers.
The factor that is causing us the most concern is that in
September, an unprecedented amount of public and private
sector stimulus measured in the hundreds of billions of
dollars is due to come to an end. Regarding buyers, the
withdrawing of government stimulus and the potential for a
steep rise in unemployment may result in less buyers having
the ability to purchase properties.
What many economists are saying that the next 12
months may hold:
• JobKeeper and JobSeeker support finishes;
• Mortgage deferment support ends;
• Significant rise in unemployment; and
• Therefore the number of properties for sale will
increase and there will be less buyers looking to
purchase property.
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The information is general information only, not financial advice, and does not take into account your individual objectives, financial situation or needs.