Covid 19 price correction: Place your bets!

This was a good result at auction in Albert Park. Sold for 1m over reserve at $9.01 million. I don't think blue chip property will be too affected with this COVID19 malarkey.

Albert Park mansion sells for $9m+ at auction, $1m more than reserve

 

Wait until the covid-19 Levy kicks in at the end of the year, that will be nasty

 

And the looming changes to NG. Losses should comeback from someone!

 

Oh well .... one thing for certain ....uber eats will survive

 

Our death rates and rate of infection has been low, our government are taking the right measures to keep this contained. The country of origin appears to be in recovery this will most likely be the case for the rest of the world.

I can stay optimistic because there is no point being pessimistic. Best to put our efforts into supporting our communities and local buisness's the best way we can. Things are not going to be easy, many will feel the sting but we as always will unite and support our communities, families and friends through this as we have always done.

Thats the "Classic Aussie" being there for a mate..

 

Amazing, lets see if this is sustainable

the longer this goes on the more damage me thinks

time will tell

 

U.S. Jobless Rate May Soar to 30%, Fed’s Bullard Says

"Federal Reserve Bank of St. Louis President James Bullard predicted the U.S. unemployment rate may hit 30% in the second quarter because of shutdowns to combat the coronavirus, with an unprecedented 50% drop in gross domestic product."

That's not a typo. That's half of the US GDP gone - worth US$10 Trillion.

That will have a huge impact on the World Economy.

 

I can see a couple of impacts. Rents will go a bit lower, and unemployment will increase. But ppl buying property are really going to be looking at interest rates, and as they go lower it makes sense to buy property, so some support for house prices will emerge. As fear is a strong emotion, there will be more worry about the impact on prices that actual impact, because as we get used to things and fear less, then the motivation and self interest will kick back in. I think we should be OK. Shares on the other hand ……………..

 

People without jobs don't buy houses! I can't see any way that the property market escapes while the real economy burns?

 

Certain industry's will perform better and worse at this current point. There will always be people buying.

 

Its about aggregate demand.


There will be people buying; but far, far less of them.


If you think a hit to the real economy like the one we are enduring now is not going to reduce buyer numbers and power, youre dreaming.


And that’s to say nothing of the effect on sentiment. Vital when people are making big ticket purchases.

 

I’d like to know which ones are going to be performing better...

 

Eccomerce market place, pharmaceuticals, logistics/delivery, entertainment,streaming, gaming, social services such as youth homelessness, AOD ( Alchohol and other drugs) services, remote services.

List can go on.

 

Just on this, lets predict a 30% unemployment rate.

Then filter out:

% of unemployed who were never looking to buy property (own ppor, renting)

% of unemployed who lost low income earning jobs and wouldn’t qualify for a home loan

% of pre covid-19 unemployment rate

Probably more solid points to filter out.

Can the demand for property significantly decrease with high unemployment due to Covid-19?

Many other factors to consider of course such as supply increasing, panic selling, government legislations etc

 

Purely stated that people will still buy did not make any mention about it having 0 impact nor made any mention to it not reducing. But if you are suggesting that there will be 0 buyers than maybe you are dreaming.

Merely pointing out that it is not all doom and gloom.

On another point had there been any evidence in Australia yet to show a drop in purchases or prices dropping?

 

"I skate to where the puck is going to be, not to where it has been" - Wayne Gretzky

If you're looking for evidence, you might be missing the point.

 

As of yet the sydney market has appeared uneffected. This could all very well be over within the next month or two. By all means be prepared but are we not jumping the gun assuming a 20%-40% drop in pricing.

 

Enjoy observing the puck trail then.

 

LMAO, nobody knows where this is going to go, so yes I will enjoy observing just as everyone else will. If you have a magic ball that helps you see the future then please share your insight.

Covid is another type of sars, a disease which didn't have the fitness to stick which is why it has faded off. With china already in recovery which is the country of origin then where do you think the current data points.

 

LOL, you believe the CCP data.