IS coronavirus going to cause a property market crash?

This is the question of the moment, and understandably people are concerned - I am hearing buyers are holding back from making purchases, not any of my buyers but I hear this is happening. And I understand there is a level of fear & concern.

If I had casual or contract employment I understand your concern; I have long worried about jobs in Australia - I have been very vocal about the need to bring manufacturing back to Australia and to buy more local and from small producers. This is something I enjoy doing every Saturday morning. Personally I feel jobs are our biggest issue - not interest rates or pandemics.

But one feeds into the other right now.

And while I have no crystal ball my answer to the headline question is, ultimately this is a short term crisis which will resolve & like many others we will recover. In fact anecdotally right now I would say my buyers are looking for more money to spend and not less - they're finding property prices are creeping up with more first home buyers on the ground and investors too. Bums on seats is my favourite phrase when evidencing where property prices are going, there is no better indicator than the people who are on the ground negotiating.

  • What is it taking to buy a property?

  • How many people are at the opens you're attending?

  • How much interest in each property?

These are excellent indicators for the market. Right now these are indicating our market is still buoyant. How this will change in coming weeks and months if we find ourselves in an extended lockdown is a matter to watch, but history shows us that these moments in time usually lead to a strong recovery as we all do need somewhere to live.

I'm not the only one who has this thought either. I observe a very clever property mind, Michael Yardney commenting much the same today in Smart Company he observes the underlying foundations of our market and also the cycles we have seen in the last two decades & their impact.