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Market on hold as real estate begins 6-week lockdown

Updated: Aug 9, 2020


The Bayside Market Wrap - 08/08/2020


⚡Let me just start by drawing breath and saying......what a year.


I had big plans for 2020 and I am sure you did as well, my plans involved trying new things, new processes and better honing my craft. I went into this year knowing there would be bumps along the way, a few trolls under the many bridges I would have to cross to make this the year I thought it could be! However, despite the variables, I never pictured it like this...


This week it was confirmed that all real estate auctions and inspections in Victoria must be conducted online for the next 6 weeks. Just to clarify an 'online inspection' is a fancy way of saying...watch the property video. From 11:59 pm last Wednesday, selling agents are no longer permitted to visit their listings unless it is related to a settling sale.


As you can imagine, most families, investors, actually just about everyone looking at buying a new home, will want to inspect the property in person before forking out millions of hard-earned dollars, which is completely understandable.

So the big question is, what happens to the market from here?

I believe for the next few weeks we are likely to see a few transactions here and there. Buyers have been viewing homes in steady numbers for a while now and some of those prospective purchasers may decide to use this time to secure a home which they have already visited before the restrictions began.

Property prices, which remain fairly unaffected this year should stay protected during this period as transactions remain at a minimum.


As for new listings, I am doubtful that we will see any new property launching on the market over this period. If there is a unanimous belief that people are unlikely to buy a home they haven't visited, then there is simply no advantage to advertising at this time. I know some of the industry is suggesting that you could build up a firm guest list of buyers over the next 6 weeks, ready for when the restrictions are lifted, sure, that is one option, however, I feel an even greater buzz could be achieved from a property launched in the final week/s of the lockdown or even safer, the moment the restrictions are lifted. The modern market is quick to react, the power of the online portals has meant you can rapidly go from off-market to an inspection with 30+ buyers in attendance in as little as 24 hours.


As for the homes already for sale in the community, we are beginning to see a number of them slowly withdraw from the internet, some may return in a few weeks and for others, this may be the beginning of a long hibernation.

Our incoming calls from families looking to sell are beginning to rapidly increase, with sellers curious about their options and how they can make the most of this unique market.

This year, the start of the busiest season on the real estate calendar will coincide with the end (fingers crossed) of the 6-week lockdown. Based on the statistical data provided from the stage-4 restrictions in New Zealand, the property market returned with a lot of energy and heavy competition post lockdown and has continued to recover since. While I try not to speculate, I think the market will rebound quickly in 7-10 weeks, simply based on the conversations that I am having with buyers and the amount of incoming enquiry on the homes we have listed at present.

Sellers who are ready/prepared to jump into the market post lockdown, will hopefully see a successful result fairly soon after, however, while I remain confident about a rebound, what I am unsure of is how long the energy will last?

Thanks for writing in and I hope that helps you on your journey!


Stay safe, have a fantastic week,


Mitch


Thinking of selling post lockdown? Make sure you get in contact with your agent as soon as possible as photography, video and other professional services have been restricted from operating during this time and spaces are already filling up for these services post lockdown. Be sure you get prepared over this time so you are ready to go when the time is right.


Handy tip: If you are thinking of selling, use this time to have your contract of sale and section 32 prepared, while solicitors and conveyancers are less likely to be busy during this time.

Victorian Auction Clearance Rate - 81%*


🌞 I hope this has been a valuable addition to your week, please feel welcome to email me at mitchboerner@mcgrath.com.au if you have a question about the local market and until next time I look forward to seeing you out and about in the community!


Mitch - 0478896986


Sales for the week in the community


👉 View Sales for this week in Highett


👉 View Sales for this week in Cheltenham


👉 View Sales for this week in Moorabbin



*Source: REA

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