Coronavirus: The outlook for Geelong buyers and sellers amid the COVID-19 pandemic
What buyers and sellers can expect from Geelong’s property market amid the COVID-19 pandemic.
Banning on-site auctions and public home inspections amid the COVID-19 pandemic has sharpened the focus for serious homebuyers and sellers in Geelong.
Vendors switched from auctions to a mix of sale by tenders, private treaty and online bidding apps, while there has been a flurry of transactions as governments prepare to ramp up the level of public shutdowns.
Buyers and sellers are naturally turning away, given the uncertainty, with the industry preparing for a drop on homes being listed to sell.
RELATED: COVID-19 real estate questions answered
Newtown mansion breaks record price
Where to for Geelong market as bans enforced
Hayeswinckle director Daniel Hayes said his business was preparing for trade to drop more than half amid realistic fears the market will halt for some time in winter.
But he said a positive was that only serious buyers and sellers would remain active.
“There are people that have to move and have to sell. But what we don’t hope for is panic selling, which will kill the market,” he said.
“If people act with sensibility, be cautious I think everything will be fine,” he said.
“Anyone that doesn’t have to sell at the moment is probably going to reconsider and hold off.”
Mr Hayes said the spring/summer market should be strong as a result of the quiet winter, with sellers returning for hungry buyers.
“If anything, the bonus will be that it will make people living in the congested inner cities to look at places like Geelong and see it’s spacious and more low-key and relaxed.”
Maxwell Collins, Geelong director Nick Lord expects flatter prices in the short term, but said reduced supply, affordability and record low interest rates would limit the fall.
Mr Lord said recent strong demand was positive for Geelong and he expected buyers and sellers to return strongly once the crisis abates.
“If we were in a soft market then we would be in real trouble,” he said.
“But given the market has been quite buoyant, those who have got job stability and are in a good financial position are still purchasing,” he said.
But qualified buyers would need the ability to physically inspect properties for the market to continue, despite the increasing use of video inspection tools, Mr Lord said.
“I don’t think buyers are going to purchase unless they can inspect the home. It’s a very large purchase to just buy from a viewing online,” Mr Lord said.
“They will do their research and get ready and when they can physically inspect they will start engaging in purchasing again. They don’t get the sense of how beautiful the house is or how appropriate a house is, or how big the back yard is.”
Originally published as Coronavirus: The outlook for Geelong buyers and sellers amid the COVID-19 pandemic