Via Cameron Kusher keeping it real at realestate.com.au:
…mortgage holders who have lost their jobs should seriously consider the likelihood of them finding another job, or a job with an equivalent salary. If the likelihood of this occurring is low, they should strongly consider selling their properties sooner rather than later.
1. Competition
Of course, selling a home is much easier said than done. Most humans are optimistic by nature and many Australians hold the belief that the current situation will improve (and it will), but the longer struggling home owners wait to sell, the more competition there is likely to be.
2. Demand is high
Another reason why home owners in financial hardship should consider listing their properties for sale now is that demand for property is at record-highs…the volume of high-intent search behaviour on realestate.com.au is also close to an historic high and substantially higher than a year ago.
3. Record low interest rates
Finally, a key contributor to the increase in interest for properties currently is the record low cash rate. According to the latest Reserve Bank of Australia data, the new three-year fixed rate mortgage rates average is 2.3%, the lowest they have ever been.
It’s good advice to investors as well. And the same for FHBs to wait. Even if the second reason is clearly balderdash. Transaction volumes are nowhere near records even if property porn searches are.
It’s the economy, stupid:
- virus chaos and mass immigration stalled;
- fiscal cliff dead ahead;
- RBA out of bullets;
- bank tightening;
- China decoupling and property buyers gone;
- structurally higher under and unemployment;
- smashed wages;
- tumbling rents.
Where’s the new buyer pulse coming from?
