7News Melbourne Real Estate how some sellers are still cashing in despite COVID-19
Real estate: how some sellers are still cashing in despite COVID-19
It seems there are some bright spots in Melbourne's COVID-19 gloom if you look hard enough. The property market may have ground close to a halt, but lack of supply means some sellers are still cashing in.www.7NEWS.com.au#7NEWS
Posted by 7NEWS Melbourne on Tuesday, 21 July 2020
Vendors Cashing in during coronavirus COVID-19
Who would have thought that real estate property values would be increasing in Melbourne during coronavirus COVID-19?
This news item from Channel 7 News in Melbourne says a lot about the property market, buyer behaviour and current buyer sentiment.
As a multi-award winning Buyers Agent in Melbourne and based on the information provided in this television story on Channel 7, I can interpret this story in several ways.
Four Bidders at the Auction – Why?
Some physical factors include that it’s a big house on a decent size block of land and it is freestanding.
Things like garages, fast internet speeds and home offices are aspirational now and into the future given that our health has now become paramount.
Greenvale is close to the airports and will have a ‘convenience’ benefit when the government builds the North East transport link.
There are also psychological factors influencing buyer behaviour at present including an increased desire for:
- the ability to reliably work from home
- more space within a home
- additional personal security
- accommodation on a long-term basis
- the option to enable younger and older people to join a larger household to reduce overheads
- the opportunity for younger people to move ‘home’ due to unemployment or reduced government benefits
Real Estate Property Value and Demand
The current median price (July 2020) for a four bedroom home in Greenvale according to realestate.com.au is $721,000. This is relatively ‘affordable’ by Melbourne standards.
Price point and value for money probably drove this successful auction as well.
The final factor is an undersupply of houses being sold during lockdown 1.0 and lockdown 2.0 in Melbourne.
Other suburbs referenced in this news story include Hampton at 48% growth, Elwood at 31% growth, Hawthorn East 24.5% growth and Carlton North at 18% growth. These are much more expensive suburbs, so it shows that it is not just price point or potential for growth that is driving demand currently in Melbourne’s residential real estate sector.
Is now a good time to purchase a property in Melbourne?
Please do not assume it will be easy to buy a house or home in Melbourne at the moment, whether or not you have the cash or approved finance. There are many additional variables at play.
You may benefit from professional advice and representation from a skilled and experienced Buyers Agent. Preferably one who has worked in tough market conditions before and can guide you through the process to ensure that your property purchase suits your needs both now and in the future.
You need to buy the best property within your budget and not overpay. Right now, we have no idea how long this coronavirus COVID-19 situation will last and you need to be prudent.
Likewise, if you are planning to sell your property, our vendor advocacy services will ensure you select the best Real Estate Agent for your location.
I have personally worked in real estate through both the Global Financial Crisis (GFC) and as some older Melbournians’ would know, the Pyramid Building Society Crash when I was just starting out in real estate.
This experience is helping me right now to help my astute buying clients secure the best residential real estate on offer, for their needs, at the right price, in Melbourne.
To organise a no-obligation, confidential discussion, please contact us now.
For independent advice on buying or selling real estate, contact Janet Spencer at Buyer Solutions +61 3 9816 8555 or email jspencer@buyersolutions.com.au
Buyers Agent, Home buying, State of the market, Vendor Advocacy
+61 39816 8555