Contrary to the doom and gloom that many finance experts have been predicting for the Australian property market, we are yet to see prices slump here in Newcastle. Some houses are still selling quickly and for very solid prices.
This week, one home that we viewed for a client sold after the first inspection, for above what we appraised it at, and at the very top of the price guide. Another home we viewed for a client sold after 8 days on the market with three interested parties pushing the price above our appraisal, and again, above the guide.
Some selling agents I have been speaking to are telling me that many their properties are selling quickly, with one agent reported selling 4 homes this week. There is lower levels of stock, but there are still active buyers about. It seems buyers are concerned that the property stock will dry up, so they’re diving in now before that happens. The buyers that are around are very motivated to buy. People with secure employment and government jobs, retirees or those who have already sold still need to buy homes and are not put off by the pandemic.
Although the days are longer for agents with individual appointments, rather than open homes, they are enjoying that all of the prospective buyers are genuine. And it seems that online auctions, although a bit more difficult and time consuming aren’t putting people off either, with many homes being successfully sold by this method.
Local conveyancer, Julie Fox of Fox Stevens Conveyancing, is still reviewing contracts and fielding steady enquiry, but is finding the execution rate of purchases has dropped. She has also noticed that there are less vendors requesting contracts of sale. The conclusion being, there is less stock on the market for purchasers to choose from and less buyers, but the market is still ticking along.
Those looking for a bargain due to the coronavirus pandemic are going to be disappointed at this point. Depending upon how long the pandemic lasts and how effective the government stimulus package turns out to be, there may be bargains in the future. But for now, the market is holding strong, especially in Newcastle, and good properties are still selling at solid prices.