LOCKDOWN 2.0 How will it affect the Market ?

LOCKDOWN 2.0 - What Does it mean for the property market ?

Here we go again Sydney, Gladys has dropped the hammer & we are once again, With the stroke of a pen hurled into a lock down for a Virus that has a 99% survival rate !

Safety-First I guess is the policy being adopted by the premier & who can we blame her for the caution-

If the reports are true this latest strain of Wuhan Flu is DEADLIER & more CONTAGIOUS than ever, So tough decisions must be made to preserve the safety & security of Australians.

But, How will this effect the property market ?

This is the EXACT same question we asked ourselves back in March 2020, We had just experienced one of the strongest year-starts in memory as sentiment finally shifted after the Royal Commission Crash of 2017 from VERY negative to VERY positive.

We were off to a cracking start to 2020 with homes flying off the shelves and prices rocketing up at a monthly rate of nearly 2% before SUDDENLY..

In came Corona virus to ruin the party with an epic 7 week lock-down that saw the rate of home value growth drop from 2% per month all the way down to -1% per month (you can see this clearly below)

HOWEVER there is a BIG difference between the “growth rate of property values” & the actual “average property value” across Sydney.

In 2020, During 7 weeks of lock down what we observed was price growth stopped and started going backwards by May, Just a few weeks proceeding the restrictions being introduced.
The average prices held up OK though & weren’t effected too much, Once the hysteria of lock downs and Corona virus fizzled out coming in to Spring;
We were back on the Up and Up & the market picked up right where it left off BOOMING with value growth rate PEAKING at 4% in March 2021 -

To put that in perspective, 4% monthly growth means your property value over 10 months would increase by 40% which is unheard of.

WILL IT BE DIFFERENT IN 2021 OR CAN WE EXPECT THE SAME AFTER THIS LOCKDOWN ?

Honestly, Only time will tell for sure but here’s what we know-

This time around we are coming OUT of a boom not going IN to a boom, The Australian government is highly unlikely to offer the same level of stimuli to send market soaring after “Lockdown 2.0” such as interest rate cuts & home-builder grants. (see “Why is the market so Crazy right now.?.”)

Also, The pent up demand from the preceding Royal Commission crash is NOT there this time waiting in the shadows to flood in to the market at once when this lockdown fades away to push the prices up.

NOW in 2021 the atmosphere is very different we have seen the market cooling off PRIOR to the lock down & Can probably expect it to continue the same trajectory afterwards, Just as it did in 2020.

If you are A purchaser wondering if now is a good time to jump in :

Know that those who were brave last year, Put on their mask’s & took advantage of lock downs to BUY property have been heavily rewarded.
With lock downs Agent’s face significant challenges in showing property, No Open Homes means no crowds, No FOMO & MORE opportunity to negotiate a better price for yourself in the absence of many other buyers who will opt to sit tight and not leave the house for a few weeks.

So now may be your chance to take a breath without prices increasing, & Strike a deal without as many competitors getting involved in the negotiation.

If you are a vendor thinking about selling, Who may of been trying to perfectly time the top of the market..

It’s time to STRIKE, RIGHT NOW, Yesterday in fact - DO NOT EXPECT PRICES TO KEEP GROWING DURING THE LOCK DOWN.

If you need a Real Estate Agent for Marsden Park, Schofields, Riverstone, The Ponds, Kellyville, Box Hill : CALL ME 0422 580 577, And lets get your house marketed right away to pluck one of the brave buyers left shopping at 2021 boom prices while you still can.

We had an EPIC time during the last lock down, Quickly adapting our strategies to remain effective during the restriction period, SO effective in fact Urban Land Housing sold a record number of homes while some other agencies struggled to keep up.

The moment Lockdown 2.0 was announced I can guarantee you that the plans to buy were put on hold for at least 40% of the HOT buyers who were actively looking last weekend - You need to capitalize on the 60% still looking FAST.

We have a window here while your competition is scrambling to work out what to do, Where you can #GETLISTED and secure a great result with reduced competition, As many agents are basically on 2 weeks holiday now until this thing blows over.

You never know when this lock down will end, And if we will even be able to go right back to normal & start running Open Homes again right away afterwards.

WHAT WE DO KNOW FOR SURE is right now, Sydney house prices are higher than they have ever been but that rate of growth will slow down,
So why wait any longer ?

🃏 You CAN Play the hand in front of you today, But NOT the one your hoping for - Because It’s never guaranteed !