What Covid has taught us about the new age of real estate

The abrupt end of many traditions and ‘superstitions’ and rapid rise of technology is radically reshaping how we buy and sell our homes, leading industry experts say.

Timing has always been key when marketing a home.

School breaks, public holidays and federal elections were typically avoided due to a common belief that buyers sit on their hands during these periods.

But the pandemic has dramatically altered the property playing field.

McGrath Estate Agents founder John McGrath said despite the first six months of 2022 being cluttered with Easter holidays and Anzac Day in April, a yet to be locked in election on or before May 21, and a June long weekend for some states, the new virtual landscape of real estate means business will likely just plough through.

Timing has always been key to marketing and selling a home. Picture: NCA NewsWire / Dylan Coker

“The traditional sales calendar, courtesy of Covid, has gone out the window over the last year or two, as has the traditional sales cycle,” he said.

“Rather than sellers choosing spring or summer, people are just going for periods out of lockdown and when Covid isn’t too prevalent … it’s going to be near impossible to navigate outside of every potential speed bump with an election still to be determined, Anzac Day, Easter and Covid.

“It’ll be difficult to pick the perfect month – if there is such a thing.”

AUCTIONING AROUND THE FEDERAL ELECTION

The property market all but stalled leading up to the 2019 federal election due to Labor’s pledge to ditch negative gearing.

With no similar policy in sight this year, industry insiders believe hot market conditions will keep home seekers buying.

Nerida Conisbee, chief economist with Ray White, said both sides of government would likely discuss housing affordability, but she didn’t foresee a repeat of last election.

The property market all but stalled leading up to the 2019 federal election due to Labor’s pledge to ditch negative gearing. Picture: AAP Image/Mick Tsikas

“I don’t think negative gearing will be on the table as investors aren’t generally seen as the ‘bad guys’ this cycle in the same way they were last election,” she said.

“Investors also critically provide rental housing and there is likely to be a shortfall of this in 2022.”

Mr McGrath added that an election as a barrier to a successful sales campaign could be more superstition than logic.

“It’s probably tradition that has people saying ‘Let’s wait and see what happens after the election’,” he said.

“But when buyers say that to me I ask them ‘Whichever way the result goes, will it affect your decision to buy?’ and most of them say ‘Now that you raise it, no actually.’ So there’s a little bit of a stigma which if you think it through is unnecessary.

“If you’ve got a family home and it’s really going to suit a family then try and avoid a major school holiday period. That makes more sense to me than avoiding an election day.”

LOCKING IN AN AUCTION DATE

Dodging an election day before one is announced can be tricky, so McGrath chief auctioneer, Scott Kennedy-Green, said sellers should consult with their agent.

“It’s quite easy to navigate your campaign through an election period notwithstanding the day itself being pretty busy. We treat them as any other Saturday of the year,” he said.

“Traditionally, Easter weekends have been a bit lighter in auction numbers and (we’ve) always been respectful of Anzac Day and its meaning so we would avoid auctioning on that day.”

Dodging an election day before one is announced can be tricky, so McGrath chief auctioneer, Scott Kennedy-Green, said sellers should consult with their agent. Picture: Julian Andrews

Mr McGrath said sellers should note that auction days are not set in stone.

“If a vendor is uncomfortable about auctioning on election day, we’re happy to bring it forward a few days or push it back a week. So we can certainly accommodate a campaign that avoids the actual day,” Mr McGrath said.

“As for the buyers, if they’re interested in a property, they’ll get there, it only takes 20 minutes to vote.”

SELLING YOUR HOME IN A VIRTUAL LANDSCAPE

Elections and holidays were classically avoided because buyers were either physically, or psychologically, elsewhere.

However, Mr McGrath explained technology has changed all that.

“Buyers are out and sellers are happy to take advantage of a continuing strong market with the help of online streaming and virtual auctions,” he said.

Auctioneer Andrew Cooley drops the hammer on a house in Caringbah South via an online auction.

“Those type of activities are really making it a lot easier for people to bid and buy from anywhere. We’re all adapting to living with Covid and now buyers and sellers have several options in the process. Ultimately, It’ll be slightly unusual six months but not a bad one, things will still be quite active.”

Originally published as What Covid has taught us about the new age of real estate