You can see the desperation in Domain’s eyes, running articles like the one below urging first home buyers (FHB) to jump into the market before they miss out:
Similar guff is being published at sister Domainfax publication The AFR:
COVID-19 has opened up a six-month window for Sydney buyers to get into 139 middle-ring suburbs that have become affordable, but will quickly move out of reach again if Australia can shake off the pandemic and the economy recovers….
“Sydney and Melbourne buyers roughly have about six months before prices move again,” Dr Mardiasmo said…
“At the moment several cities have taken a little bit of a battering, but as soon as things stabilise we should see a great recovery for capital city markets.”
An unbiased observer would ask: what’s the rush?
The Australian economy is in free fall, unemployment is likely to remain elevated for years, and incomes will remain stillborn (if not outright fall).
Immigration is likely to remain low for years as the international border remains shut.
Dwelling values are falling and renting is becoming cheaper by the day as vacancies surge and rents fall.
And interest rates are already at rock bottom, meaning they will not come to the rescue this time around.
Once temporary income support and mortgage freezes are unwound from late September, there is likely to be a significant numbers distressed sales.
Rather than being gripped by FOMO, FHBs should take their time and negotiate hard for a ‘bargain’.