It’s too early to tell whether property prices will fall as a result of COVID-19: that’s the message from one Macedon Ranges real estate agent.
Keatings Real Estate’s John Keating said while it was likely that the virus would make some sort of an impact on the market, it would be several months before the full extent of the pandemic’s impact on house prices was known.
“There is an air of inevitability that with less buyers and people losing their jobs that values could easily come off in the next three to nine months,” he said.
“At this stage, it is too early to tell.”
The Woodend real estate agent has already noticed a drop in the number of people inquiring about properties. But Mr Keating said that wasn’t necessarily all bad news.
“We’ve had less inquiries but the quality of inquiries we have had are much more genuine,” he said.
Property data and analytics provider CoreLogic earlier this month warned that the property market was already showing signs of slowing down, with the number of properties listed falling across the country.
It said there had been a “loss of momentum in housing value growth rates since mid-March.
Mr Keating advised anyone who had already committed to selling or found themselves in a position where they needed to put their property on the market to be realistic about their expectations.
He also advised anyone considering buying property in the coming months to be sure they have “absolutely got their finance in order”.
“I understand that at this time, the banks are putting a lot of hurdles in place. It is not enough to get pre-approval or even approval as banks are coming back in the week before settlement to check you have employment,” he said.
“But if it is going to suit you to move, upgrade, downsize or move sideways, it is a good time for it. Values might come off and you might get slightly less when you are selling, but you might have to pay slightly less.
“My personal view, is that [when buying property], as with any investment, people should take a 10-year view.”
