In the year to March 2020, Sydney and Melbourne house prices were rising. As real estate agent Sidharth Gandhi says, "It was the best quarter."
Highlights:
- Real estate market has been hit by the Coronavirus lockdown.
- Open houses and public auctions were not allowed during the lockdown.
And then came the lockdown. Open houses were banned. People were not allowed to visit or inspect properties in groups.
And now, people are anxious about how the economy will recover after the pandemic crisis.
However, according to Mr Gandhi, market sentiment is not negative.
"The impact was horrible, but we have adapted quite nicely. The COVID-19 crisis has affected property transactions, but the prices are not down."
Listen to complete interview to know how the real estate market can behave in the near future:
"We can not predict what will be happening in the housing market in six months, but the data makes it clear, it is not collapsing around us right now."
Mr Gandhi says people are usually fearful when such crisis hits and aren't sure about what they should be doing if they are considering selling or buying.
"Property is a long-term asset class; it can not be matched with the sharemarket, which is highly volatile.
"You don't day trade property! Property is the first thing we buy and the last we sell."
However, he believes that if the sellers are selling, then the properties are reaching their reserve price and matching or exceeding their expectations.
"History has repeatedly demonstrated is that each time there is such crisis, and we hear all the negativity over and over again, but in fact, property has always done the opposite in the long run, except few short-time movements driven by the fear in the market."
"We are not seeing a lack of confidence with purchasers, quite the contrary due to great government incentives, grants to support the economy. "
However, Sidharth Gandhi maintains the same can not be said for the sellers.
"Lack of stock could well be the issue for the market as purchasers who have a steady job and looking to enter the market are still keen to buy."
"Hopefully, that will turn around once vendors come to understand that the world hasn't are still keen to buy"collapsed."
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Disclaimer: We’d like to point out that the information contained in this segment is general and is not specific advice. If you would like accurate information relevant to your situation, you should ask an expert.
