Well . .what a difference a day makes in the world right now. Information we would normally have followed closely . .like the stock market's biggest falls . . now doesn't command top headlines.
These days it's all about the COVID-19. This week the reality of what we should have done weeks ago is finally hitting home.
With stats about how Singapore, Hong Kong and Taiwan have successfully 'lowered the curve' (a term we have become very familiar with), State and Federal governments are acting to simultaneously get in front of the virus spread while flushing the economy with cash.
COVID-19 impact on AUS property market . .so far
To date the property market is showing very little reaction to the unfolding events. At the opens and auctions last weekend (14 March) there was absolutely no difference in attendance. And that was after large share market dips right up to Friday and the 'pandemic' announcement on 11 March. In the queue for opens, every first time buyer I spoke to was excited about the fact the share market + virus might scare other buyers off.
By the time I made it to the higher end ($1M+) purchases, the queues were bigger. One property which appealed to hybrid buyers (investors + up-sizers) had more than 50 groups in attendance. Yes . . bait pricing was in action but the crowds were still there.
From a negotiation perspective, we have found vendors (owners) a little more flexible to deal with but there's always the group who stubbornly say they will just pull their property from the market if they don't get their price.
The message from both sides of the fence last weekend was " . . this is short term and my property activities are long term". I didn't see one mask . . .but I also consciously thought to stay a little further away from everyone, no one shook hands (though I don't usually shake hands at opens) and I didn't touch anything . .once again I never normally would.
Below is the latest in summary of 'Asking Prices' as compiled by SQM Research.
I'm expecting we will see changes on the ground this weekend but, as we specialise in providing services to buyers, I'm in the box seat to give you a transparent view of current buyer sentiment and – to date – buyers who are confident in keeping their jobs are not backing down.
Remember it takes approximately three to six months to prepare to purchase, and the buyers who obtained their approvals in the past few months are extremely motivated because the property market was scorching hot due to pent up demand after the Federal election in May 2019.
Those buyers are now getting a sense they may literally have the opportunity of a lifetime to access some bargains . .not to prey on unfortunate vendors, but to deal with vendors who will be reasonable as opposed to sellers who were constantly increasing their sales prices.