One little change can shift the market 180 degrees, and it’s on!
Over the course of the last two months the real estate market In Melbourne and surrounding suburbs has been pretty much in a holding pattern due to the restrictions in trade placed upon our industry, (and nearly everyone else’s) due to the Corona Virus.
The Government have seen fit to employ some pretty stringent tactics to combat the spread of the virus during August and September and as a result the whole real estate market had shrunk to a point where it’s about 10% of its normal size. No live Auctions. A few online Auctions each week. Virtual inspections of properties for sale IF you knew how to work the technology and DEFINITELY no in person inspections of any property.
This led to a some pretty hesitant purchasers and even more so Vendors. I mean seriously, who would list a place knowing the potential buyers couldn’t see it, touch it, become emotionally attached to it and spend more than they should on it. That’s not how Melbourne real estate works.
Well, all of that changed Last Monday September 28th. The Government decided, after some pretty heavy lobbying from the REIV, to allow one on one physical inspections of properties for sale. And with that simple little tweak of the rules they effectively turned the Victorian Real estate industry back on overnight.
You see purchasers can now see and touch and connect with the bricks and mortar they intend to pay off for the next 25-30 years and that makes ALL the difference. If they can see it, they are happy to spend on it. That happiness to spend leads to more buyers coming out of the woodwork (the old sheep mentality or as we respectfully refer to it “Social proof). This in turn means greater competition and as such vendors can now see the ability to get what they feel they deserve for their homes. And with that, its ON!
I know it’s ON when I get a text from an agent friend of mine this morning, a week after the announcement, telling me he has just listed 7 of the juiciest properties I have seen on the market in three months. Stock I have been crying out for has just magically appeared. A little too late for us though as we managed to pivot during the lockdown and secure some pretty outstanding stock along the way, but it would have been a heap easier if this stuff was around when I was looking.
Well, I guess its spring and in real estate terms that means it’s time to roll the sleeves up and get stuck into things again so I am sure this added stock will come in handy. I just wonder though, if this is week one after one little change, what’s the market going to be like when live and in person Auctions are back on? As they say in the Avengers movies it’s time to “Suit up”.
