25 May Where are Property Prices Headed?
There’s a lot of speculation out there at the moment about the real estate market. In this real estate vlog Henry Wong of Harcourts Beyond chimes in with his take on where are property prices headed.
“Hi, welcome to Henry’s Thoughts. Today I’ll talk to you about what’s happening in this kind of market. We’re constantly getting asked the question, is the market going up, is it going down? And obviously, probably in this scenario, most people don’t think it’s going to go up, but it’s going to go down 10%, 20% or even 30%.
Well, here’s my take on this. Now, this really depends, you see, I believe it really depends on the pocket that you’re at. Let’s say you’re a homeowner, right? And you live in a pocket, and let me show you in this pocket, you work for the airline industry, all your neighbors around you work for the airline industry, the art industry, the entertainment industry, the industries that are really affected by this pandemic and the restrictions the government is putting in. And as a result, you’re feeling financially pressured and you need to sell. Obviously the price is probably looking at going towards a decline.
Another way to look at this is that you can look at the buyers. Now, the buyers that are actually buying in the marketplace, which industries are they in? Are they in industries that are affected? If they’re coming from industries that aren’t affected and you get enough of them creating a competition, the price may just stabilize. If not, the prices may come down.
The thing is, you see where you live, you don’t really know what your neighbours do for a job. You may do, but you probably don’t know enough. At the end of the day only time will tell how this will pan out on a week to week basis. But one thing we do know is if people keep losing their jobs, then obviously they can’t pay their mortgage, so they need to sell no matter what. And if there’s a lot of sellers in the market, then the price will come down. But like I said, each pocket is very different and also it comes down to the kind of buyers that are attracted to buy. So there you go. That’s my take on where the price is going to go in the current market.”