PHOTO: Australia’s property market
The housing market is predicted to suffer due to the economic downturn from COVID-19.
However, there’s plenty of debate around just how much damage will be done – with prices expected to take a real dip once loan deferrals expire and JobKeeper payments end.
“A strong economy and a strong jobs market generally leads to house price growth, when buyers are feeling confident and banks are happy to lend,” said finance editor Gemma Acton.
“We’re seeing the exact opposite of that at the moment.
“The only people who are selling right now are people who have to sell – and you wouldn’t sell if you didn’t have to because buyers know they can take their time.
“The real question is how many people are going to feel like they have to put their house on the market over the coming months?
“A lot of people’s financial situations have changed. Many investors who are relying on rents to pay off the mortgage are seeing rents fall or are struggling to get tenants in.
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