The weaker economic outlook due to the coronavirus epidemic has changed the sentiment of buyers towards the housing market, according to the latest CoreLogic survey.
The survey asked real estate professionals nationwide about their perceptions of the feelings of buyers and sellers amid the COVID-19 pandemic.
"The immediate and remarkable response is that the buyer survey dropped sharply. Respondents were asked if they had seen a change in the buyer survey during the last week, "said Eliza Owen, residential research manager at CoreLogic.
About one in three respondents said that they had seen a drop in buyers' requests by more than 50%. This could indicate that consumer sentiment has been affected by the economic outlook, particularly with regard to unemployment, said Owen.
Regarding the activity of sellers, roughly the same proportion of respondents said that the survey of sellers had dropped by more than 50%.
"It is clear that COVID-19 responses deter property buyers and sellers. However, government restrictions that impact the housing market are vital to limiting the spread of COVID-19 and reducing the burden for the Australian health system, "said Owen.
Read also: Alternatives to open houses, public auctions
Some market observers expressed optimism despite the ban on housing auctions. Leah Calnan, President of the Real Estate Institute in Victoria, said interest in the Victorian real estate market remains strong and local agents are starting to embrace technology and explore workarounds amid the restrictions.
"The Victorian real estate sector is a flexible, innovative and resourceful industry capable of dealing with any problem," said Calnan. "Many agencies have already invested in and tested online platforms for property auctions in the past few months, and homes will continue to be sold in Victoria."
Michael Yardney, director of Metropole Property Strategist, said that it was crucial to take a long-term perspective at times like this and analyze the fundamentals of property.
"After each global disruption, there has been an increase in property prices, and there is no reason to suggest that it will be any different because the fundamentals are still solid", a- he declared.
Yardney said that the potential impact of the coronavirus on the housing market presents an opportunity for Australians to buy or invest.
"There is no doubt that there will be opportunities in the market for those who are ready to go against the crowd and when they look back in a year and certainly in five or 10 years they will will remember the unprecedented events of 2020 as a great buying opportunity for the property, "he said.
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