While the COVID-19 epidemic has already significantly affected market activity and listing volumes, property values ??have remained in positive territory for the past few weeks, according to the latest CoreLogic market analysis.
In the 28 days ending April 21, real estate prices rose 0.4%. However, growth had slowed from 1.1% in mid-March.
Eliza Owen, chief of residential research at CoreLogic, said that it is still likely that property values ??will fall in the midst of the downturn. However, the moderation in growth momentum was milder than the "dramatic" impact on market activity.
"It seems difficult to understand that property values ??have not fallen. In a speech on April 21, the Governor of the Reserve Bank, Phillip Lowe, pointed out that we are facing the worst economic contraction since the 1930s, "she said.
Read also: The activity of buyers remains strong in certain markets
In the speech, Lowe suggested that in June, national economic output could drop 10% while the unemployment rate could reach 10%. The total number of hours worked is also expected to decrease by 20%.
Owen said it could lead to a higher volume of distressed sales when homeowners are struggling to pay off their mortgages.
"And yet, there is so far no evidence of this," she said.
Over the 28-day period, new enrollment volumes were actually 28.7% lower than last year. The total registration stock also decreased by 23.8%.
Owen said that this had led to a limited supply of housing, which could be one of the factors preserving the relative stability of housing prices.
Suppliers' expectations also help stabilize the value of properties. Given the "temporary" nature of the forced downturn, Owen said sellers could keep a relatively high expectation of the value of their property, with a sales plan once the economy reverted to large-scale production .
In addition, bank deferral offers could also help cushion the impact of the COVID-19 epidemic on real estate prices. This option has helped minimize the number of people struggling to pay off their mortgages.
"A real test for property values ??can come after these" vacation periods "are over. Financial regulators, the RBA and the banking industry can extend the stay for mortgage payments in the scenario where economy hasn't made any improvements in six months, "she said.
Top suburbs:
melton
,
albion
,
north epping
,
spring wood
,
alexandra hills
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