- This topic is empty.
- March 9, 2020 at 5:50 pm #23779PK GuptaGuest
Most probably, COVID-19 will have a very small impact on Australian residential house prices. Property market conditions are the best they have been for many many years.
Armchair philosophers can speculate, but on the ground, even as people stockpile toilet paper, auction clearance rates are increasing, multiple offer situations are become more common-place, and house prices are rising – sometimes at double digit annualised rates.
Momentum may slow down, but the difference in the current price movement vs the last boom is this time it is fuelled by first home buyers and up-graders – not investors. There is fundamental grounding in what is happening out in the field.
It’s easy to throw around Warren’s quotes (be greedy when others are fearful), but the fact is – there is no sign of fear in the property market to date.
Even in the GFC, it was only Sydney that experience a mild decreasing in house prices – every where else continued to rise! Not exactly apocalyptic.
The fundamental purpose of residential real estate is to provide shelter, and over the long term, more and more people in Australia will need shelter. Residential property is safe as houses.
- April 2, 2020 at 11:13 am #24546JohnyTheWiseGuest
At least 30% down. When we had the GFC, at least the economy was turning. Now millions of people have lost their jobs and we will hit a recession, then depression. To think anything else you got to be hibernating.
- April 6, 2020 at 11:30 am #24659MickythemascotGuest
I’m tipping conservatively that the virus is sorted out by June and we are in for a 12 month recovery after. I think if you work with that your pretty safe. There is a good lesson for all to learn from this.
- You must be logged in to reply to this topic.