Berry Blog

It’s with excitement that we can say we are in a little sweet spot at the moment. Australian’s are feeling better about the easing of many of our restrictions and a sense that to a degree we can get back to a little bit of normalcy.

The world as we know it will obviously never be the same again and has changed how we operate from a personal security aspect whether flying, schools, large public gatherings or toilet paper.

However, in the short term, what is going to affect us more significantly than Covid 19 health risks than perhaps most of us could yet comprehend, is the economic ramifications of not only fundamentally shutting our country down economically but shutting down the whole world markets. One can only imagine what the road ahead might be with an estimated 10% unemployment in Australia and many countries worldwide with far worse figures.

We see the research houses of so many institutions all forecasting a significant downturn and now constant talk of the recession. Our Four Major Banks, who are closely aligned to real estate, are forecasting anywhere from 20% to 32% fall in prices. These are indeed unprecedented times. What does this mean for the future property market?

During the Covid-19 period, very few sellers came to the market with the pending uncertainty. If they didn’t need to sell they held.

Others thought the real estate industry was shutdown and that they could not sell. It caused a significant shortage in the number of properties on the market for sale. Whilst buyers declined in numbers, there does still exists a situation where there is a healthy number of buyers, and so the market is in fairly healthy balanced position. If you get your price right, you can sell and in a good time frame.

We are now finding that through discussions with many people who have immediately been affected by Covid-19 that business owners who are in huge debt situations and need to sell their properties will be going to market. People who have lost their jobs and are now eroding all their savings and have started discussions about selling their properties. This new wave of listings that will come through to the market moving forward are a new type of seller. The financial distressed seller that will take lower prices just to get their properties sold. These sellers will determine market prices moving forward and is what causes property values to decline. This is why the Banks believe there will be a decline in prices.

It is essential for any seller now to get ahead of that wave. To take advantage of this current market. Prices are still achieving some really great prices.

Let’s work together, as we get you the best result possible in today’s marketplace.