In what was speculated to be a potential property crash in Australian property has led to level prices across the property markets. Corelogic’s home value index reveals that Adelaide’s median property values dropped 0.2% to $440,000 in June, the lowest fall across the nation.
This comes after significant rises in the months March-May period where prices increased by 1.1%.
In comparison the Melbourne and Perth markets have seen slightly larger drops of 1.1% – which is still well below the double digit decreases that some property analysts were warning.
Salisbury based real estate agent Greg Murphy of GM Real Estate welcomes to the recently released stats as a strong result for the resilience in the Adelaide market.
“the recent results from Corelogic show the fundamental strength of the Adelaide property market”, he said.
“the Adelaide market has shown for some time that whilst it may not see extreme price rises compared to the Eastern States, it also weathers downturns well as affordability is consistently strong.”
Mr Murphy said that consistent demand in his local area of Salisbury had seen strong demand as first home buyers snapped up properties coming onto the market, absorbing any supply available.
“Atock levels remain low, we’ve actually seen a slight drop in listings across the Salisbury LGA which puts upward pressure on those properties coming onto the market. It’s a great time to sell if you’re thinking of upgrading.”
Land Services SA noted that this stock level reduction has been apparent across the Adelaide market, with completed sales dropping by more than 30% in the month of May.
Many industry insiders are providing anecdotal information about many buyers and sellers holding off from transacting in the property market until normality returns. This is being tipped to be a strong sign of resilience in the property owners financials with the ability to defer mortgage repayments allowing breathing room for mortgage holders so they do not have to commit to put themselves under due financial stress.
What should you do if you’re under financial strain during the COVID-19 pandemic?
If you’re currently struggling financially due to the impacts of COVID 19, speak to your financial lender immediately to discuss your options. With many lenders they are allowing 90 to 180 days of deferred home loan repayments, allowing borrowers to reduce their ongoing cash flow commitments during this period. Do note however that you will in most cases still be charged interest repayments and will need to pay higher accelerated repayments thereafter to pay down the debt over the required term. You may want to consider speaking with a financial counsellor during this time if you’re struggling to manage your budget.