One of the most commonly asked questions we have been hearing during the COVID-19 global pandemic is, ‘Who would want to buy or sell property now?’ Even now that we are coming out the other side of this crisis in WA and Australia, many property owners and buyers are still wary to act due to an uncertainty about the current property market. This uncertainty is understandable given the unprecedented few months we have just been through coupled with talk of a national recession.
So we thought we would clarify this for you and explain why there are many opportunities available to property owners and potential buyers right now, despite the challenges we have faced in recent months and despite what well meaning friends and family may be telling you.
Here are some reasons why now is a great time to reactivate your property plans.
- We are Australia’s most affordable state to buy property in
WA has retained the title of Australia’s most affordable state to buy property in for the eleventh quarter in a row. For those looking to buy their first home, the proportion of family income required to meet home loan repayments was 25% in the March quarter 2020 compared to an average of 42.5% in Sydney and Melbourne.
- Interest rates are the lowest they have ever been
With interest rates on home loans as low as 2.5%, a home loan of $400,000 could cost less than $200 per week, cheaper than renting in most cases.
- Buyers are active
For the above reasons and because confidence is on the rise as we see light at the end of the tunnel of this crisis, buyers are out and about again. Since we have been able to conduct home opens again, we have observed a surge in buyer enquiries and the number of groups attending home opens.
- Sales transactions are happening
The property market has not experienced the downturn expected and the number of sale transactions has been on the rise. The market is definitely open for business. Even realestate.com.au has reported that search activity is on the rise.
- Less competition often results in a better price
There is a shortage of property listings at the moment. In fact listings are 30% down on the same time last year and at their lowest level in 4 years. This means demand outweighs supply. When this happens you often see multiple buyers competing for the same property resulting in a higher price than when there are more properties available for sale. Less competition also makes it easier for your property to capture the attention of the market.
- When upsizing, downsizing or moving to a more desirable area it’s all about the changeover cost
Now is an excellent time to move if you are upsizing, downsizing or wanting to move to a better suburb. Even if you sell your home for a little less than you would normally want, the cost of your next home will likely be more affordable than it was when you last did your research. You may be surprised what your money will get you now. It may mean that the house you’ve always wanted by the river or beach or the apartment you’ve dreamt of close to the city is now within reach. A good example is Unit 20/11-15 St Leonards Street Mosman Park, which is now on the market for under $400,000 after a substantial price reduction!
Worried about safety?
Don’t be. Despite the relaxed COVID-19 restrictions, we are not being complacent and have all the necessary procedures and physical distancing measures in place to keep everyone safe.
Still unsure? Here’s how we can help…
Our property appraisal process is accurate, reliable, detailed and costs nothing but around 30 minutes of your time. Importantly, we won’t tell you a price that we think you want to hear. We tell you the truth based on recent comparative sales in the area and the value in your home, including the hidden value we extract from you that others may never know. This will allow you to make an informed decision about your future moving plans. If you decide to stay put, that is absolutely fine. There is no obligation to sell at all. We are here to help.
We also offer a complimentary property presentation advice service and our trusted tradies are available to help you prepare your property for sale so it achieves the best possible price. If you would like your property professionally styled we offer that service too.
There is no other agency more experienced in residential sales south of the river than Shelmark and no other agents who care more than we do. Why not give us a call on 0417 963 670 to have a chat about your options.