Jon Ward Commentary July 2020
I hope you and your family are well and managing to stay positive during these difficult times we are all experiencing. Another 6 week lockdown in Melbourne is just what we didn't need and I feel deeply for those experiencing job losses or reduced hours and for the small businesses that are really struggling to stay afloat. Needless to say but the health of us all remains the primary concern and I understand the sacrifices we must all make for the greater good. Real estate in Melbourne is certainly going through a tough time according to Corelogic's head of research, Tim Lawless. “It looks like this downturn is gathering some momentum, with three months of value falls across Melbourne. There’s now added complexity because of the second wave of coronavirus across Victoria, which will weigh on consumer sentiment. It will probably mean less activity and fewer buyers.”
In my experience, property owners in Melbourne tend to be on the conservative side of things when compared to the rest of Australia with a 'when in doubt, don't sell' attitude being the general approach. How this market resilience will pan out over the coming months is the big question and with lenders extending repayment relief terms, the market will have some time to ride it out but the help won't last forever. Take care during the second lockdown.