As we enter in to the great unknown of the current global health crisis it is hard to predict exactly how the real estate market will respond. Is now a good time to sell in case the market crashes? If prices do fall how long will they take to recover? Is Adelaide real estate likely to be as volatile as the Eastern States?
Economists are predicting that this crisis will lead to a short and sharp downturn of most sectors of the economy. The good news is that the experts also predict that housing will be one of the first and strongest markets to recover. The old adage “safe as houses” proves true time and time again because ultimately people need somewhere to live. With interest rates at an all-time low of 0.25% and banks still well and truly open for business, the biggest challenge to a market turnaround will be job uncertainty and consumer confidence in general.
The Adelaide market is historically very conservative when it comes to market fluctuations. We rise less than our neighbours in the Eastern states, but thankfully we also fall less and generally remain at a more or less steady climb.
There are still home buyers out there. They may not be as active as usual due to social isolation measures that the government has imposed but rest assured they are searching on line. In fact RealEstate.com.au has reported that compared to this time last year before the pending election, there has been an increase in search activity! Consumers are using this time to research where they might like to live, and how much they can spend, these buyers will no doubt be ready to buy more freely as soon as the initial uncertainty and fear has diminished.
There may be a shortage of properties on the market at this time, but there will most likely also be less buyers looking so although the volume of sales is expected to decline, demand for properties should remain constant as long as this supply and demand ratio remains fairly equal.
For us at Walter & Irvine it is business as usual for our buyers and sellers -but just with more hygiene and safety measures being adhered to and a little less face to face contact. We look forward to answering any more specific questions that you may have about the best time to sell for your particular circumstances. We are available 7 days a week and are also happy to conduct a virtual appraisal of your property if you prefer.
If you have been thinking of selling now is also a great time to do some research about the best way to ensure you get the maximum price for your home and the best agent to work with.
The team at Walter & Irvine Real Estate