COVID-19 Effects on Property Markets

The world waited with bated breath to see how COVID-19 would affect the economy. But as an investor, you probably have a more immediate concern: your property values.

You also probably wonder how your investment strategy will survive post-pandemic.

It’s on many investors’ minds and one of the biggest questions we receive from our clients:

Have property prices dropped during COVID-19?

The big answer may surprise you - the market really hasn’t moved all that much. 

You have to remember that a lot of people are choosing to sit it out right now rather than selling their properties.

So, if you aren’t selling your home, the market can’t drop, right?

The definition of a “market drop” is that people are selling their properties for less than what they’re worth. And they’re doing it on a large scale.

Sure, there was a slowdown in activity in the property markets. But the Real Estate Institute of Australia recently released news that it’s starting to see a spike in activity.

Even Melbourne and Sydney have had increased auction attendances over the past couple of weeks.

So, based on that, the market certainly seems like it’s heading in the right direction. And that’s only the start!

As people start getting back to their daily activities, you may see many more people getting ready to put their homes up for auction. 

The key, though, is patience.

Adopt a “wait and see” attitude and see where the market goes. If you were in a position to do so, maybe you jumped on a few investment opportunities during this time. But if you weren’t able to take advantage, there’ll be plenty more ahead.

As a savvy investor, you already know that investing in real estate is playing the long game. Sometimes you see spikes and sometimes you see dips. But rest assured that the pandemic didn’t cause the market to drop.

Are you ready to take advantage of the available investment opportunities?

Let us help you find your next investment property.