Be ready to make a move

While housing has taken a hit from the pandemic, there are always opportunities for astute buyers

- DAVID THORNTON

The economic damage and uncertainty resulting from the coronavirus has derailed the property plans of thousands of Australians. Or has it? Experts can’t agree.

Research released in early May from comparison website Finder shows that 24 of 42 economists and finance experts (57%) believe now is not a good a time to buy. Twenty-five economists felt that house prices in capital cities could drop between 6.4% and 10.5% by 2021.

While there are differing views about the short-term future, there’s also evidence to suggest not all is lost for those wanting to buy a home.

Glenn Wealands, head of client experience at Rabobank, says that for people who were ready to buy a home pre Covid-19, or were looking to buy in the next six to 12 months, those dreams haven’t been dashed.

“When looking at 10 years of data from our Financial Health Barometer, the 2020 results show that a record number of Aussies were planning to purchase a home in the next two years – stronger than in 2016,” he says.

While buyer sentiment was strong before we reached peak Covid-19, predictions on the property market can be akin to using a crystal ball. There will always be opportunities and challenges for people looking to buy.

So is now the time to follow Warren Buffett’s mantra to “be fearful when others are greedy and to be greedy only when others are fearful”?

Population growth slows

Property is likely to experience a double hit from the economic slowdown and the need to socially distance. With incomes and jobs lost, people previously in a position to buy a home will need to reassess.