The latest property data shows that prices are holding their ground against price falls as buyers compete for a dwindling number of listings.
Prices in most locations across the country increased slightly over April even though listings fell by about 35 per cent, according to CoreLogic.
Dwelling prices firmed in every capital city, apart from Melbourne and Hobart, over April, with regional areas also posting positive results.
We have been saying throughout the coronavirus crisis that property has a history of resilience given it is a stable asset and these numbers support that point of view.
More affordable locations, as well as property price points, also appear to have held their ground better during the economic uncertainty.
The pandemic has certainly caused most people to reconsider their financial positions and outgoings, with more affordable locations and properties likely to be the beneficiary in the months ahead.
With the easing of restrictions likely to begin soon, including for property inspections, the latest data is a welcome shot in the arm for the property investment sector.
It also is a welcome slap-down to the myriad property naysayers who have come out in masses proclaiming that real estate prices were going to fall off a cliff.
One of the factors that generally causes sudden price falls is mortgagee sales and that is not happening – and is unlikely to happen as well.
The various financial support programs available, such as JobKeeper, as well as mortgage repayment pauses and rental support packages were assisting home owners and investors.
This means that property owners aren’t suffering the same level of financial distress as perhaps has been the case during other economic downturns. Also, with fewer active buyers, many vendors are holding off listing their properties for sale, which is helping to prevent price falls.
We have remained active in the market during the crisis and have not seen plummeting price falls in any of our negotiations. This is especially the case in Brisbane, where we are still having to negotiate with vendors, who are generally getting the price that they listed their property for.
People are currently paying the listing price instead of five or even 10 per cent above it, which is not a technical price reduction at all but rather a sign of a stable market.