Opportunity amongst uncertainty
We are now approximately six weeks into the pandemic we know as COVID-19. We are beginning to get an idea of how to prevent spread and are flattening the dreaded “hockey stick” curve.
When it comes to the property market, it shouldn’t come as much of a surprise that deals are still getting done. Although there might have been a slight drop off in volume of properties for sale, there are owners who need or want to sell. There will always be a significant pool of opportunistic buyers who need or want to buy. Granted, a number of these buyers were in the market before COVID-19 and are resolute in completing their often lengthy mission. Having said that, there are new entrants to the property market who see the reduction in competition as very much an opportunity.
Unless employment security has been affected, generally, we haven’t seen much in the way of distressed sales or dramatic discounting. The Australian Government has introduced initiatives to help combat employment concerns and mass panic-selling. Many potential vendors are choosing to wade out the next few weeks, by which, the market may rebound back to where it was pre-coronavirus. The market may have seen the average price recede a little since pre-crisis in late February, however, this is largely due to the decrease in access to these auctions or sales. With the increase in virtual auctions and lack of access to inspections, foot traffic is down – resulting in reduced competition.
The coming weeks will be a very interesting period to monitor. Virtual inspections are great for an initial browse, however, a physical private inspection of a property is essential before negotiations start. Due to reduced numbers allowed to attend inspections at any one time, inspections aren’t the 15min fly-by we are accustomed to. These inspections are very much a quality over quantity strategy by agents now. Potential suitors are being screened and evaluated on intent to purchase. Stories are emerging that agents are occupying single properties for hours, not minutes – spending quality time with highly motivated buyers. This gives agents not just an intimate knowledge of the property, but also any potential buyers the opportunity to find out everything they need to know to make a quick purchase.
Many buyers are choosing to avoid inspections altogether, preferring to have an expert do the leg work for them. At Accrue, we do all the hard work for you. We review hundreds of properties and short-list the best properties for your individual needs. This ensures the health and safety of Australians are maintained and everything is being done to avoid the spread of COVID-19. Having an expert do the hard work for you also takes the emotion out of the transaction, resulting in a transaction being based on the most important factors – numbers and logic.
Contact us today and find out more about how having someone work for you can benefit you – long term.