With all the drama surrounding COVID-19, most of us have been keeping a close eye on news headlines to get an understanding each day of what is going on.
Amongst those headlines, I have noticed some sensational claims about the property market. It is easy to be swept up in these news stories, however it’s worth remembering not every article relates directly to the property you own.
What the real estate headlines are saying
One recent article gave the ominous warning that ‘house prices could fall 30 per cent’, which is definitely a startling prediction if you own a home Mosman.
However, when you read this article in detail, you’ll see it is based on modelling and depends on persistently high levels of unemployment. What’s more, the predictions clarify that the drop would take place over three years, if it did happen at all. So this is more of a worst case scenario than an inevitable disaster.
In contrast to the above headline, other news outlets shared more immediate news, saying ‘data released for April found no material decline across the capital cities, with a modest gain recorded in Sydney, the country’s largest market.’
There was also a property expert who recently suggested that the property market will be ‘insulated from coronavirus jitters by a range of factors.’
And while one headline suggests the Australian property market may begin to struggle due to a lack of migrants, another headline points to ‘Chinese buyers flooding back to snap up Aussie property’ and Chinese buyer numbers remaining strong.
Plus, with in-person auctions being back on the table after a brief period of being off-limits, Domain reported that, ‘The return saw first-home buyers out in force, with strong results for sellers across the city.’
What all these opposing headlines make clear is that nobody really knows exactly what is going to happen next. It is easy to make predictions but impossible to say exactly what will happen to property prices in Australia and in Mosman in particular.
And all these forecasts are general in nature. They don’t take specific suburbs or homes into account.
The real picture about Mosman property prices
No matter what you read, it is important to take everything with a grain of salt. Newspapers and publishers have space to fill and are always looking for people to share their opinions, discoveries and forecasts.
When it comes to your own home, the headlines don’t paint a clear picture.
The fact is, no matter what is going on in the market as a whole, your property’s value will be what the most motivated buyer is willing to pay for it. And this will be based on a range of factors, not just what is happening with the overall market.
The location, the size and the proximity to the beach, shops and city all determine the value of your property. There are also factors such as the outlook of your home, how much attention it needs in terms of looks and structure, and how desirable its layout is to current buyers.
The number of interested buyers will also help determine the value of your property. Even when things are in a ‘slump’, properties can set price records, as regularly demonstrated in the Mosman area.
Something else worth noting when it comes to national headlines is how unique Mosman is in Australia. As one of the most sought after areas, it often sets its own pace in terms of property value. This is thanks to the prestige homes and the elite professionals who gravitate towards the area.
So don’t panic when you see a doom-and-gloom headline. The important thing if you are ready to sell is to get the right support so you can achieve the best value for the current climate. Instead of worrying over what the news is saying, work closely with a real estate agent who knows the local area, has excellent connections and is able to determine the value of your property based on facts, not estimates or news stories.