June 2020 - Local Market Update

Our local Property market is remarkabaly resilient. Australians love talking, reading, guesstimating market conditions and all in all “ the real estate market” is always of interest. During this time of Covid 19 we have been hearing a consistent message form our community, our clients, and social media that is:

Bunnings are overcrowded with DIY jobs to update our homes….
We have loved playing uno and monolpy with the kids in our home….
We want our family and our friends to come over for a BBQ in our home….
We want to visit our Grandparents in their home…

We are all seeing the value in our home and to quote the famous line from the famous Australian movie our home is our “castle”. And hasn’t this become truer in recent months as we have all stayed inside, idol and realised our homes are essential to our lifestyle and our well-being.

While predictions for the property market for the next year have ranged from optimistic to dire, what we have observed locally is that pens are now back up, enquiry has increased 20% on the same time last year and though we have no data to support this we feel that there is a “renewed invigoration” for local love. Our community are shopping, eating and enjoying our local hub more than ever, we are hopeful that this is one of the long term benefits of what’s happened in the past 3 months.

We anticipate a spike in “tree changes” though this has been happening over the past two years, the “isolation” period has increased our enquiry from clients coming from Melbourne suburbs, where they have been considering future plans to downsize and leave the city for a lifestyle change. It seems people are seeing this as a clear way forward.

At First National we saw property activity stand still in April, in May we saw sales bounce back and in June there has been an increase on the same time last year. Across the country we are reading the stock levels are low, this is consistent with our local market, and what this means is low level supply of stock has prevented property prices from falling significantly.

In the property management space we are seeing everybody doing their bit, landlords are negotiating, tenants are paying their rent and appreciating the support of government assistance, the banks and lenders are very supportive of the current climate by deferring mortgage repayments and cutting interest rates to the lowest level in our history. We have noticed vacancy rates lowered over the past 3 months and have had an increase of 13% on rental inspections and an increase of 7% on new listings.

We are all experiencing change like never before, it is the great unknown but what I can share with you as a 15 year old realtor we have had other economic disruptions and the one thing we learn is there will be an end and there will be another side to this. Our team are confident that property transactions will continue in our community as people buy their first home, upsize, downsize or look for ways to invest outside of the share market.
Buyers are out in force, homes are selling fast and multiple offers are increasing. If you are considering selling your home please call our team on 03 5744 1331.
We are here to help.

Danielle Kennedy