This years home-buying season is anything but normal. What traditionally has been known as the smart investor’s season for buying and selling homes has been upended by COVID-19.
The pandemic has spurred concerns about people entering homes and job security, all while potential buyers are hearing that interest rates are lower than ever, but are being met with extremely tight credit restrictions. Although some of the conventional thinking on what makes a good time to buy still remains true, there are new factors for home buyers to consider. This is particularly important for the largest group of purchasers; first home buyers that represent 32% of transactions of new dwellings.
Basically this group have only been through this down turning market, “It’s easy to look back and almost be triggered from an emotional standpoint.” But the positive news is that while the housing market had slowed down there is a rapid improvement in sight, we have reached through the tunnel and light is coming through the other end". It’s not going to look anything like the great depression, economists and governments have learnt to stimulate the economy into positive markets as a down markets benefits no one.
Despite the list of evolving challenges one thing that remains, is that this buying season is showing a lot of demand from astute investors & first home buyers looking seriously to take this opportunity to buy when others are reluctant to do so, therefore capitalising on the lack of competition.
New reports on the housing market predict that the recovery is likely to take path in the months coming forward. May 2020 was the peak of the pandemic here in Australia. In this regard the outlook for September and beyond is looking positive as the industry starts to reopen, people return to their workplaces, businesses get back to business and the economy returns to liquidity.
Ultimately, when it comes to whether or not someone should buy a home right now, it depends on your life circumstances. For people still sitting on the fence, it is important to understand right now is the time for confidence.
If buyers are planning on staying in the house for 7 to 10 years all of this noise will make little to no difference. The upside certainty of the great Australian dream becomes a reality.