We hope you are doing well and staying safe amidst the current global situation we have surrounding the COVID-19 pandemic. With new policies being implemented that ban on-site auctions, we suggest looking into remote auctions and inspections for now.
Please get in touch with us to discuss how to get started. This time could also be waiting game for many, so you can take this time to do some online research and set your goals and plans for your home or property investment.
The Reserve Bank of Australia (RBA) announced it has decided to keep the official cash rate at 0.25% at its April meeting, following the two rate cuts on March 3 and 19. The decision came as a response to the uncertainty surrounding the global crisis caused by the COVID-19 pandemic. The RBA also expressed its priority to support jobs, incomes, and businesses, in order for the country to recover strongly once the crisis recedes.
With on-site auctions cancelled, 40% of auctions were pulled from the market during the last weekend of March, while the preliminary clearance rate dropped to 51.4% during the same week. While buyers, sellers and agents are still adjusting to online and over-the-phone auction formats, it is projected by CoreLogic that the number of withdrawn auctions will continue to increase. It is also expected some vendors will convert their listing into a private treaty listing.
On a positive note, RBA governor Philip Lowe announced that “Australia’s financial system is resilient and well placed to deal with the effects of the coronavirus. The banking system is well capitalised and is in a strong liquidity position. Substantial financial buffers are available to be drawn down if required to support the economy. The Reserve Bank is working closely with the other financial regulators and the Australian Government to help ensure that Australia’s financial markets continue to operate effectively and that credit is available to households and businesses.”
* Monthly Home Values figures as at March 31, 2020
* Australian auction results, clearance rates and recent sales for the week ending April 5, 2020. The clearance rate is preliminary and current as at 10:10 am, April 6, 2020.
We understand that it has been a challenging month as we deal with the uncertainties. If you plan to take this time to explore new property options, refinance options to free up equity, or you are experiencing financial hardship due to COVID-19, get in touch with Fornaro today.