The unique dynamics of COVID-induced lockdowns isolated the housing market from the drastic impacts of the pandemic, according to the latest CoreLogic study.
The study found that during Sydney's recent foreclosure its real estate scene remained relatively resilient, particularly the auction market. In fact, for the two weeks ending July 4, 74.6 percent of scheduled auctions turned into a sale.
The resilience of the housing market has also manifested itself in the evolution of house prices. The market saw only a 2.1% drop from peak to trough through 2020. This was offset by the 12.2% price spike in the first six months from 2021.
"There was a lot of uncertainty amid the nationwide Second Stage restrictions last year, and sentiment regarding the housing market performance has worsened collapsed. But the supply also went down, as sellers and agents knew this might not be the best time to market a property. This helped to balance the overall effect on prices, "said Eliza Owen, head of research for Australia at CoreLogic.
Owen stated that government and institutional responses played a key role in keeping the housing market stable.
"A large part of the reasons the housing market did not experience further decline in value was the huge income support programs provided to households, JobKeeper's role in maintaining working relationships , low mortgage rates and postponed mortgage payments, ”she said. "In the event of another extended foreclosure, the future of housing demand and supply becomes much less certain if that same government and institutional support is not there." "
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