There’s been a lot of talk about the pending economic downturn due to COVID-19. It has been distressing to learn of the unprecedented job losses and sector-wide shutdowns that social distancing restrictions have brought about.
But a ray of hope for Australian homeowners is that at least in the early stages of the pandemic, property values across the country have held firm.
Data released by CoreLogic showed their Hedonic Home Value Index increased by 0.7% in March. Not only that, property prices were already on a solid footing to begin with, after both Brisbane and Adelaide reached their peak price in March, and with Sydney just 2.7% off its peak.
We wait to see what the corresponding April report shows, but the indicators are that if there is to be a severe and prolonged downturn we’ll be given fair warning and have time to act before the worst hits.
RetireAustralia’s General Manager of Sales & Marketing, Paul McAlpine, has 15 years experience working in the property sector, both in residential land sales and retirement living. He’s optimistic a crash is not imminent.
“What we’re seeing is the number of properties being listed on the market has fallen amid concerns around what the full economic impact of the COVID-19 pandemic will be,” Paul said.
“The scarcity of homes available in the market could see a drop in property values delayed and prices staying strong for several months.
“With restrictions now being eased, and the real estate industry preparing to host property inspections again, sellers who move now will be ahead of the curve and stand a good chance of selling their property before any potential fall in prices does occur.”
So if you’ve been thinking about selling your home and making the move to a retirement village, now could be the right time.
“Timing is everything when deciding to downsize,” McAlpine continued. “The best case scenario is that you list your home when the market is high and you’re not in any rush to sell.
“Conversely, you can wait a little too long and have health or other limitations dictate when and how quickly you need to sell, which is not a situation you’d want to be in with the current uncertainty in the market.”
Another great thing is that retirement living is all about certainty. Even as we live through these uncertain times, retirement village living is stable. You’ll know what you need to pay when you move in and what you’ll receive when you leave. No need to worry about future downturns or market instability.
If you are 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.