MB Fund Podcast: Australian Property Catches Coronavirus, with Catherine Cashmore (updated: Podcast now available)

Australian Property has caught Coronavirus: The strong rebound in Australian property values has come to a shuddering halt with the Coronavirus lockdown. Auction clearance rates and buyer sentiment have collapsed, unemployment is surging, and mortgage availability is tightening. All of which points to heavy declines in Australian dwelling values.

In today’s webinar MB Fund’s Head of Investments Damien Klassen, Chief Economist Leith Van Onselen, Head of Operations Tim Fuller and Property Buyers Advocate Catherine Cashmore, discuss “Australian Property Catches Coronavirus”.

View the webinar slides here

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Tim Fuller is Head of Operations at the Macrobusiness Fund, which is powered by Nucleus Wealth.

 

The information on this blog contains general information and does not take into account your personal objectives, financial situation or needs. Past performance is not an indication of future performance. Tim Fuller is an authorised representative of Nucleus Wealth Management, a Corporate Authorised Representative of Nucleus Advice Pty Ltd – AFSL 515796.

Comments

  1. What you have not touched on is that once the banks start to restrict credit as they have then interest rates rise which will then be the complete death knell
    Interest rates always rise in a credit crisis

  2. last September there was the repo crisis where overnight money in the US spiked to 10% for a 48 hr period
    from this point on the Fed has been furiously expanding its balance sheet
    When banks dont trust other banks they stop lending & the market forces rates up

  3. Athena, a new player in the mortgage market has withdrawn/stopped offering loans.

    “At the current time we cannot offer loans…blah blah blah”
    No real reason given but a liquidity issue could be the cause.

      • From the Athena website -start the application form and this is the first page.

        “THURSDAY 26 MARCH 2020
        COVID-19 is turning everything upside down and it’s not business as usual. And on top of everything we are facing unprecedented demand for Athena home loans. We know when you’re buying property certainty matters. That’s why we’re pausing applications for purchases because we want to make sure we are never not there for you when you need it. We are still open for refinances, but you should know these may take longer than usual.

        We’ll be back in the swing of things soon. Sign up to hear when.“

        • annualize_this

          Thanks. ‘Unprecedented demand’ hey? I think that very unlikely to reflect what their business has seen in the past 4 weeks. I also noticed that they are advertising loans for <70% lvr. Perhaps anything above that they are unable to lend for at the moment.

          • Athena got some pretty heavy exposure on the morning tv shows, between that and the overheated property market (thanks Scomo) it is possible that the unprecedented demand is real.

            The last 4 weeks…. nah, not so much. it’s a dead zone right now. Numerous articles have suggested falls of anywhere between 10-30% but I’m not seeing that reflected in the lower end of the market. . Even the horrific bushfire affected areas aren’t dropping.

            The demand for over priced property is still there, which is why I think Athena is having a liquidity issue.

            Here in the NT we are about a week or two from having restrictions lifted. Our borders will stay closed but cafes and restaurants will open and so will auctions. The expectation seems to be that things will snap back to life. Me? I don’t know. There’s no inter state visitors or investors. When the job keeper payements stop in September, that’s when there is going to be a wave of business closures.

            I own a retail and online store. I think I’m screwed