Property Market Update - July 2020

As Australia starts to relax its COVID-19 restrictions, Victoria has suddenly seen a spike in infections, and 12 suburbs are being put back into stage 3 lockdown. What does this mean for the Melbourne property market? How will this impact the Melbourne property market?

What should you do, if you are STILL house hunting? Savvy property hunters are still buying throughout the lockdown. Should you have bought? Is it too late for you?


COVID-19

Melbourne has, unfortunately seen a spike in COVID-19 infection numbers. 12 suburbs have been marked as COVID hotspots and travel in and out of these suburbs are being discouraged. This may seen dire, but how would this affected interests in the property market?


While buyers are still buying, and properties are still being sold, CoreLogic has reported a drop in median prices. Is this a sign that the property market is crashing again? Unlikely.


While drops of 1% make newsworthy and eye catching headlines, it does not necessarily mean prices are starting to crash. Prices seem to be trending down, but with buyers usually shopping within a price range of +/- 10%, it is hardly a cause for concern.


What's more worrying is the curge in COVID-19 cases in Victoria. The possibility for a state-wide lockdown is high. Victoria could be put back into a Stage 3 restriction, if not worse. This means, non-essential businesses will once again be forced to shut, and non-essential travel banned.