Today the most googled question is whether Covid-19 or Coronavirus is affecting the prices of the house or not? The answer to that is negative. The prices of the properties will go down. People until now were speaking on how the property market was developing recently due to the interest cut-rate that we faced last year, but the story of 2020 has changed due to the coronavirus.
What Can The Rate Cuts And Stimulus Packages Do?
Soon after the news of Covid-19 was into highlights, the Reserve Bank cut the rates. This can simply mean positive for the housing market because the prices can gob up and down and stabilise, but here the reason why the bank was cutting was the negative impact of Coronavirus, therefore, there was no space to escape.
Also, the government has released the stimulus packages and some fiscal stimulus is on their way but there are some limits that the government cannot break and can work accordingly. In some time, there will be a negative impact on employment as well and the economy will fall short.
One must except to have a strong rebound in the year 2021 but in short terms, it is like to hurt. In some of the sectors, people will lose their jobs and thus it is fair to say that coronavirus is formulating uncertainly broadly in the community.
In the market of real estate India, the bottom line will have a pullback by the buyers which will take the motion away from the Indian house estate market and the price may fall. Several people who have stocked their wealth in the share market has been made small and easy. Along with that, the people who use that wealth to buy new properties in the housing estate has also been reduced.
What do you need to do if you want to buy?
During this time when the real estate market is going down, people with secured jobs are one who is in a better place because the market is getting weak. Coronavirus will take out groups of buyers who are approaching to the wait-to-see policy and those who are simply unable to buy due to the reduced income.
There is also a group of buyers who have jobs but are also facing the uncertainty of Covid-19. This is affecting the pay and also whether they will be able to keep their job or not. Several buyers belonging to this type will be taken out of the housing market for the present situation.
What to do when you wish to sell?
If you are the person selling then you should appreciate the things that are happening today and that things are going weak. The sellers who have the flexibility feature can defer and can stable the falling price.
People will still be there who wants to sell no matter what is the reason. There will be properties in the market through which the turnover might decline.
Things to do as a property visitor
For investors out there, the market is getting quite tough. For instance, the markets oversupplied in Sydney has already put some downward pressure on the rents. The investors can indeed have an advantage of the declining rates, but it is possible only when there is offset in the rents declining.
Coming of Covid-19 has caused a weakness in the economy by accentuating downward pressure in the rents in a very short period of time and that is something investors need to be aware of. In case if the prices come down, you as an investor will likely be in a better position to buy the real factor is the weak rents. This time will shortly be over.
Therefore, the real estate India is declining but might make its way up again soon.