Following the Victorian government’s announcement of Stage 4 restrictions, it’s safe to say Melburnians have a few questions about what we can and can’t do Read more
Date: 31 July 2020
Selling Property during Coronavirus
Here at Frank Gordon, community is at the core of what we do. We are here to Read more
Q – How is the second wave of stage 3 restrictions in Melbourne likely to affect the market?
Having successfully navigated the initial wave of Read more
Blink and you might have missed it this year, but it really is June, and June means tax time.
Now is a great time to Read more
Date: Tuesday 9th June
How is Frank Gordon helping to protect the community from coronavirus?
With low rates of community transmission across the state and a Read more
So how did the Melbourne property market do in May?
Date: 3rd June 2020
Topic: Melbourne Property Market 2020
There is no question about it, it Read more
12 May 2020
In breaking news, auctions are back in Victoria from Wednesday 13th May.
Auctions will be limited to 10 registered bidders which means Read more
Date: 09 April 2020
Updated: 20 April 2020
Here at Frank Gordon, community is at the core of what we do. We understand this is a stressful Read more
Date: 08 April 2020
Updated: 20 April 2020
Here at Frank Gordon, community is at the core of what we do. We are here to support Read more
Date: 24th March 2020
COVID-19 is the issue on everyone’s lips. If you’re a homeowner or looking to become one, you’re probably asking how all this is going to impact the property market.
At Frank Gordon, we’re real estate agents, not economists or clairvoyants so we’re not going to make predictions. Instead, we’re going to keep you informed on what we’re seeing and explain how we’re adapting our services in this period of change.
The last global pandemic was over 100 years ago, and the last economic recession nearly 30 years ago. The world was a different place and this is why it is difficult to predict what happens next. As real estate agents, we monitor the market closely and this is what we have seen so far,
- Prior to the COVID-19 we saw a great bounce in 2019 with rising property prices across Melbourne. Additionally sales volume had been decreasing YoY leading to strong buyer competition.
- Since the outbreak the RBA and Government have announced measures to provide phenomenal support to the economy. The reduction of the cash rate (Now a historic low of 0.25%) will support the property market, ease household budgets and assist small/medium businesses.
- Australia’s financial system is resilient with record low interest rates, government stimulus and a low dollar to assist exporters.
On a micro level in real estate,
- Frank Gordon has been experiencing a healthy level of buyer demand. We have transacted just over $4,000,000 in sales in the last two weeks.
- The Melbourne clearance rate is sitting around 67%, up from 47.2% at the same time last year
Where are properties values are likely to head?
Based on the closest scenarios in recent past, economists are tipping prices to recede and days on market to increase.
Housing is an asset class that thrives on confidence and at the moment, consumers are understandably worried. Confidence affects our desire to make major changes which may lead to fewer property listings and transactions in the short-term.
Having said that, when limited supply meets consistent demand for lifestyle property we always achieve results. People do not put their lives on hold indefinitely and there are plenty of demand-side drivers for Bayside housing;
- Mortgage rates are the lowest they’ve ever been with little prospect of going higher for a number of years.
- The volume of stimulus now in place means the economic rebound post COVID-19 is likely to be strong.
- Long-term safety of property compared to equity markets
- The banks have repeatedly said they are open for business and ready to lend meaning that property transactions will continue to occur
- The dramatic fall in the Australian dollar will be stimulatory for exporters
- People are going to have a lot more time on their hands over the coming weeks/months meaning they will have time to research and consider their next property move
COVID-19 is the issue on everyone’s lips. The second and third quarter of 2020 will be a uncertain time for our society and we need Read more