PHOTO: SIMON MAUDE The economy is reeling from coronavirus, but it’s not all bad news for property prices.
OPINION: While we are in self-isolation for four weeks, almost all of our significant life decisions have been suspended.
House-buyers clearly face the most uncertain environment they have ever encountered. Undertaking the biggest financial commitment of one’s life is something which most people will rightly view as extra risky in the next few months. So even committed buyers focussed on their long-term housing needs and interests will back away.
Those unfortunate people who will lose their jobs, their business, or their profits will also back off from a purchase, as will those who might have been thinking about shifting but do not want to subject their family to extra stress with everything else going on.
The absence of demand will have two impacts. One is on turnover which will simply not happen over the next four to eight weeks as we are in lockdown, and will then be very weak for the remainder of this year. Real estate agents will not be at work, property inspections cannot be undertaken, no auctions can be run.
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