Is now a good time to buy?
By Advantage Property | 16th Jun 20
The coronavirus crisis has transformed Melbourne back into a buyer’s market. We are currently in uncertain economic times and when that happens people become more conservative in their decision making. We have seen a dramatic drop in property stock levels throughout Melbourne. After all, why would you sell now unless there was a real need too?
This in turn means that for those in stable employment, there are real opportunities. There are great opportunities for investors to secure properties tens of thousands of dollars below what they may have paid a few months earlier and for home buyers, there is an excellent climate to negotiate a purchase without the fierce competition we were seeing a few months back.
So would I recommend buying now? If you plan to hold a property for the next five years or more regardless of if you are a home buyer or investor then I believe there are some great opportunities to purchase at the moment. I do not think that we have seen the bottom however I do not foresee more than a 10% market correction overall. I do think there will be some uncertainty surrounding the next six months in our economy. Overall what impacts the removal of schemes such as job keeper and job seeker will have on the economy and also how the economy will hold up with the remaining restrictions on day to day life and businesses in place will be interesting to see.
The housing market has weathered many economic downturns and it has proven to be a safe investment over time. I expect this to be the way that the property market plays out again as good real estate is as safe as houses.