COVID-19 vs YAMBA PROPERTY MARKET - Looking for certainty in an uncertain time?
COVID-19 has not only taken many lives but it has completely changed the plans of many people around the world and the potential economic cost is starting to be seen as the economic data starts to roll in. Locally here in Yamba we have managed to find our way through the crisis better than most places. If you have to be in lockdown then Yamba is the perfect place although, I had planned on being on a walking food tour in Rome today, not at home banging on a keyboard. Plans change!
If someone asked you in 2015 what your 5 year plan looked like I’ll bet it didn’t include the pandemic world in which we now find ourselves living! So often in life we make our plans and set our course only to find the outcome so different to what we expected. Real estate is often the same with many people buying very different homes to what they had planned.
As consultants in the real estate industry the one question we always get asked is ‘how’s the market?’ As a general rule, because we work at the coalface of the business, we do have a pretty good grasp on how the market is going and also where it’s heading . . . unless of course there’s some unforeseen event or catastrophe that changes things.
So what happens now?
The Yamba real estate market was performing strongly prior to Coronavirus appearing and is still holding up well with full price sales and a shortage of available stock. We’ve seen no rush of sellers to the market and no severe discounting of prices here or around the country . . . the sorts of things you might expect to see in a sudden global crisis. Lots of pundits have been predicting price corrections of between 10% and 40% across the country. Maybe it won’t happen or maybe it’s too soon to see the effects.
Real estate markets are driven by supply and demand and swing from buyers markets to sellers markets as the cycle rolls on through good times and bad. Right now there are some serious clouds on the market horizon but the sun is still shining brightly here in Yamba.
What happens now depends on several factors that either support or detract from the supply and demand ratios.
These are 7 big things to consider if you’re thinking of selling or buying . . . .
The long awaited highway upgrade is nearing completion and bringing the huge SE Qld population base closer to Yamba. That’s a big tick on the demand side of the equation.
The huge number of people who have just discovered they can work from home and don’t need to be in a big city anymore. Tick to demand.
Our property market is affordable but limited in size with homes from $400k to $3m – there’s something to suit everyone.
Cheap money – The cost of borrowing money is cheaper than it has ever been.
The Australian property market is seen as overpriced compared to many other countries and long overdue for a correction according to some experts.
COVID-19 – predictions of massive unemployment around the world and a correction of between 10-40% in Australian house prices.
Fear! Nothing causes people to hunker down and hibernate from decision making more than fear. "Let’s just wait till this blows over!" is the catch-cry. I think you’ll agree there is a lot of fear around at the moment as we move into a new way of living that none of us have experienced before.
Which way the market will respond in the near future to all of these factors requires a bigger crystal ball than I currently have. We have never experienced a world like we have now and how it will all unfold is still mostly unknown.
What we do know is properties are selling now so if that’s part of your plan call today!