The Hervey Bay property market has not yet seen dramatic impacts due to COVID-19. There are three main factors that need to be considered when discussing the resulting possibility of a real estate downturn.
Australia is not simply one real estate housing market. There are micro-markets with their own conditions. (Hervey Bay property market = regional)
- Regional or City: The regional Australian real estate market, such as Hervey Bay would be different to the market in a capital city.
- Demand and Supply: A shortage of supply and demand of housing in Australia (viable property) results in price rises. Whereas a market oversupply causes a drop in house prices. We see a steadier housing market supply equation occur where levels of housing supply and demand balance out. Supply-demand greatly affects property prices.
- Financial Services & Factors: There is also impact from RBA Interest rates, bank mortgage competition, and money supply in the form of Government financial stimulus packages. *Refer to your personal bank or financial adviser
Responses and Consequences of the Economic Impact of COVID-19
•We’ve seen the RBA cut the cash rate twice during March 2020. Banks look like they will forward these savings on and are creating new policies to better assist home loans during the immediate pandemic and going forward.
•Some banks are offering mortgage relief by freezing home loan repayments for six months, refinancing, and/or extending the loan term without penalty.
•These new policies, along with the low $AUD mean that properties, especially in the larger cities are now more affordable and/or more accessible to overseas buyers.
•Since the coronavirus pandemic, investors are considering property market investment, as opposed to the share market.
•The Government financial aid and stimulus packages allow access to funds that may relieve financial hardship to buyers and sellers in the short term. These measures although helpful in the short term, may have more negative economical side effects down the road.
Consumer Confidence Impacted
One of the key impacts of coronavirus COVID-19 is that of consumer confidence. Uncertainty abounds around the ultimate length of the restrictions and if the Government stimulus packages, RBA, bank policies, etc will be enough. There’s also wide concern as to what these institutions will do after the six months period.
Should You Sell Your Hervey Bay Property Now or Wait?
Listing agents do not have a crystal-ball regarding Hervey Bay property prices but short supply market conditions always indicate that NOW is always the best time to sell. Now is a great time to invest or buy a home, especially with low interest rates and relaxed lending requirements from banks.
In a property oversupply market, selling now may get you in front of any future price drops in the Australian property market. If you do decide to wait; you may risk higher competition as more properties come onto the market from sellers that are under strong financial and/or personal pressure to sell. There is also the potential influx of deceased estates flooding the property market. The result of an oversupply of properties for sale is downward pressure on prices.
Hervey Bay Property Market Trends & Moving Forward With What We Know Right Now
Currently, there are new coronavirus update announcements being made by health officials every day. New Government legislation and policies are also being implemented very quickly. Beware of self-proclaimed “media experts” who predict housing market trends without any real estate experience or credentials. Their predictions may not be accurate, helpful, or even true.
We advise that both Hervey Bay property sellers and buyers discuss any financial matters/financial advice with their bank or financial advisor. Likewise, any legal matters should be addressed with their solicitor. All real estate matters are best discussed with a trusted local real estate professional with experience in the type of real estate and/or property services you require.
Our Property Brokerage team is made up of managing real estate brokers, sales agents, and admin management staff who are all fully licensed real estate agents and brokers. This means that each agent has met all licensing requirements.
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If you would like more information or a complimentary Hervey Bay property appraisal or suburb report, send us an email. If you have further concerns or any questions, you’d like us to answer send us an email or feel free to leave your comments directly on the blog.
