Since the COVID-19 outbreak, a commonly Googled question is: Should I buy a house during a pandemic? With falling property prices, low-interest rates and declining competition, there seems to be a ripe opportunity for potential buyers in the market. However, there is still plenty of market uncertainty and speculation about this issue.
When COVID-19 hit, many businesses had to be closed temporarily or went bankrupt altogether, stock markets crashed, consumer and business confidence plummeted, and the property markets were severely restricted in terms of physical inspections and auctions. And yet, could there be a light at the end of this seemingly dark tunnel?
According to Metropole Property Strategist Michael Yardney’s article, Australia’s economy is on the road to recovery. Ever since March, the economy has slowly gained traction through better social distancing measures, remote work arrangements and government stimulus packages. If you have financial stability, you have an even better chance of securing a home loan and meeting the costs and repayments involved with purchasing a property.
While unemployment has risen and many businesses have been tragically impacted, many property experts have noted that current low-interest rates in the Australian economy are only temporary. In the short term, property prices are expected to bounce back in the 4th quarter of this year as the economy recovers gradually from the coronavirus. During this time, Hardney notes that we’re likely to experience a “perfect storm for property”, especially with the current low prices for luxury properties.
Homebuyers and property investors can take advantage of this opportunity, where a strong surge of property price growth is forecasted in the second half of 2021. As the economy grows accustomed to the post-COVID world, this will involve: more government spending and infrastructure projects to further develop the economy, historically low-interest rates, relaxed credit approval criteria in March 2021 (allowing people to borrow an also $70-100K more), rising tourism and overseas migration, and increased consumer confidence.
Looking to Buy a House During COVID-19?
If you’re searching for a home loan during the pandemic, we can help you achieve your property goals quicker. You’ll get a seamless, obligation-free service from experts who will work closely with you to research and negotiate a loan to suit your lifestyle and financial circumstance. Contact us now!