November 2020 ~
With so much talk about people buying properties over Facetime and Melbourne people keen to get out of the city and relocate to regional areas to, we felt it was a good time to discuss what’s really happening with the national, state and local real estate market.
Local Echuca Moama Market
Charles L King and Co Director, Troy O’Brien confirms the strength of the regional property market and growth from Melbourne buyers showing a lot of interest in our stunning region – why wouldn’t they – however, he says, local people are definitely still in the mix!
“The local market is amazing right now and the demand is still outweighing the supply,” Troy said.
“We are seeing a lot of competition for homes right now, with both locals and people from out of town making decisions based on lifestyle and thinking with their hearts more than their heads.
“This is driving competition for properties, so it’s a great time to sell your home,” he said.
According to the First National Real Estate blog, “Australia’s capital city housing values increased in September with the exception of Sydney and Melbourne” – mainly due to the associated COVID-19 restrictions.
The impact of falling values in Sydney and Melbourne (representing 40% of Aussie housing stock by number) dragged the national average down 0.1% – comprising a 0.2% drop in the capitals
In contrast, “the regions performed solidly with a 0.4% rise across the regions in alignment with the striking lift in consumer confidence and the number of listings for sale”.
The main reason for the slump in the Melbourne market was obviously Stage 4 COVID restrictions severely hindering any real estate activity and it is very good news for our Melbourne cousins that private inspections are now back on the agenda (with a few limitations).
Since a peak in March, Melbourne values have come off by 5.5%, however the ease in restrictions should see a change in this trend over the coming months – time will tell.
First National also declared that “relative to the capital cities, the regions keep putting in a solid performance, in a reflection of demand transitioning away from the cities as a result of COVID-19. Combining results across all regions, the index has slipped just 0.8% since March, while the capitals have fallen 2.6% in the same period. In September, the ‘rest of state’ region, apart from in Western Australia, recorded a lift in housing values”.
Specifically, stats showed that many First National’s regional agencies continue to experience high levels of enquiry, especially coming out of metropolitan Melbourne. As restrictions ease, an outpouring of demand from Melbourne is anticipated.
What about Government Assistance?
First National predicts potential headwinds in the market due to “governments beginning to wind back levels of financial assistance and mortgage deferrals come to an end, against a backdrop of weak labour markets.
However, a number of factors influence are supporting improved housing market conditions. CoreLogic’s head of research, Tim Lawless, says ‘The aggregate effect of low mortgage rates, and the prospect that rates could fall further, low inventory levels, government incentives and improving consumer sentiment seems to be outweighing the negative economic shock brought about by the pandemic.’
Also, let’s not forget, first home buyers are back in numbers given the considerable government assistance on hand with house and land packages. In Victoria, for example, some buyers stand to gain around $50,000 of assistance, and sizable grants remain on offer from most government jurisdictions.”
So, essentially, if you’re thinking of selling in Echuca Moama now is the time to contact our sales teams today on (03) 54 822 111 or visit our website and contact one of our sales agents directly anytime.
DISCLAIMER: The blog contains advice that is of a general nature only and intended as a broad guide. The advice should not be regarded as legal, financial or real estate advice. You should make your own inquiries and obtain independent professional advice tailored to your specific circumstances before making any legal, financial or real estate decisions. See the First National website for more information.