Aussie property to boom post-virus!

You can’t afford to wait!!! Via RealEstate.com.au:

Panicked buyers who recently sold their homes and “have nowhere to live” are scouring the market, while vendors are being advised to consider private offers.

Barry Plant Doncaster East director Mark Di Giulio was about to end the auction when a final bid added $20,000 to see the sale price jump to $1.8 million at the four-bedroom property.

“The person that won it had just one bid,” Mr Di Giulio said. “It was a desperation buyer that had sold their house this year and needed to settle before lockdown occurred.”

Mr Di Giulio said his phone had “gone into meltdown” with buyers in a similar situation.

…“They’re saying, ‘no need to negotiate, what’s the price?’ People need the basic essentials.”

…He added a low Australian dollar, government stimulus packages, cheap cash rates and the anticipated stock shortage would work in the real estate market’s favour.

“I’m predicting a boom market once we’re out of lockdown and the virus has passed,” he said.

Breaking news: Realtor says “buy now or miss out”.

There’s just one small problem with this sales pitch. I’ll let Westpac do the talking:

…the unemployment rate holds at 11% in the September quarter and then moves a little below 9% by the end of 2020 and then towards 8% by end 2021.

8%+ unemployment in two years time. Thankfully, we have a local property market that shows us what happens in such circumstances of chronic high unemployment, falling income and oversupply.

It’s called Perth and it’s down roughly 35% in real terms over seven years:

And it’s unemployment rate never got near double figures.

Just sayin’.

David Llewellyn-Smith
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