It’s possible the next few months could prove to be the best conditions for selling in the medium term.
Last month we wrote about the early housing market reactions to the COVID-19 pandemic, noting that while turbulent times had been touted by the media, a negative impact was yet to be realised in property values.
The data we presented in that article was from March, so perhaps it wasn’t too unexpected to see prices relatively stable. But with figures released by CoreLogic last week reporting on May prices, it’s interesting to see the picture hasn’t changed much at all. There’s been some small declines, and surprisingly even a few cases of prices rising.
Prices around the country
Nationally prices dropped by 0.4% with declines in five of the eight capital cities:
- Sydney -0.4%
- Melbourne -0.9%
- Brisbane -0.1%
- Perth -0.6%
- Adelaide +0.4%
- Canberra +0.5%
- Hobart +0.8%
- Darwin -1.6%
The picture is slightly better in the regions with only three of the seven markets recording lower prices:
- Regional NSW -0.1%
- Regional Vic +0.1%
- Regional Qld 0.0%
- Regional WA -0.8%
- Regional SA +0.7%
- Regional Tas +0.6%
- Regional WA -1.2%
Given the severity and reach of economic restrictions, this is a remarkable result. But what does it all mean looking forward?
Cautious optimism but still uncertainty
Most commentators had predicted a deeper slide in prices than we’ve seen to date. So does this mean we’ve escaped the worst of the COVID fallout, or is it still around the corner?
According to Paul McAlpine, RetireAustralia’s General Manager of Sales and Marketing, there may be a case for cautious optimism.
“Clearly we’ve seen some quite severe economic impacts due to the pandemic, but the resilience of the property market so far has been remarkable.
“When we consider the gains the market has shown over the past 12 months, a fall of less than half a percent is a very small correction.”
The bigger question is of course, what to do if you’re planning on selling this year – act now while things are relatively stable, or hold out?
While the outlook is uncertain, it’s possible the next few months could prove to be the best conditions for selling in the medium term.
“The lockdown conditions have sent a shockwave through the economy which for the time being is supported by government stimulus, but what happens when those stimulus packages begin to be rolled back is really hard to predict.
“If I was planning to sell this year, I’d be very seriously considering doing it now because the process of a house sale does take time and you want to give yourself the best chance in the current stable conditions,” Paul concluded.
With all this uncertainty around, many older Australians are seeking the security and peace of mind on offer in RetireAustralia communities. Our financial model ensures you know exactly what you’ll receive when you leave the village, so there’s no need to worry about future uncertainty or downturns.
If you’re interested in taking another look at retirement living, get in touch with one of our friendly sales consultants to discuss how we can help you make the move.