We have all heard it before – what goes up, must come down. When it comes to markets, the same applies in reverse – what goes down, must also come back up.
When COVID first hit, the country went into a panic, nobody knew what to do and what the impact of this unprecedented situation would have on our lives, our livelihoods and the economy. I remember for about two months everyone was like deer in the headlights – shocked, stunned and not knowing what to do next. From a real estate point of view, it seemed that the only way was down, and then down some more.
However, as time went on and we had more time to assess things, we realised that we could go on. Professionally we could cope with the restrictions on the real estate market and adapt our businesses and also use the slowdown to work on our businesses. And the market didn’t collapse, prices didn’t plummet as the doomsayers predicted and conditions improved. In many locations we are almost operating as we were pre-COVID.
Personally, we realised we could do without a lot more than we thought. Most of us also realised that there were things that we really needed, that were the most important to us. Other than our relationships, families, close friends and health, many of us got the time to really figure out whether home was really where the heart was.
In other words, if this was our lot in life, were we really happy with where we lived, how big or small our house was, who and what we wanted to live close to, or who we lived with?
I believe one of the biggest outcomes of the pandemic is that many people have realised they do not like where they live.
This is evident in the numbers of Australians returning home, with 357,000 having returned since March. Obviously, this is also due to Australia being a safe haven for those working and living abroad, however that perfectly explains my point – if it was that great where they were why didn’t they just stay there? And yes, some have by choice, but many have decided to return to be closer to family, enjoy a great lifestyle and be in a safer environment.
Local homeowners have also realised their home doesn’t suit – either in terms of size, amenities or location – and are looking to move. And many of them are acting quickly, not wanting to get caught in a second or third wave and being isolated again in a home they don’t like.
This has all had an effect on the market, causing a temporary shortage of homes and competition among buyers.
And as well as owner-occupiers competing for homes, investors are also jumping in, realising there is a shortage and that rental returns are, and always will be, a low but stable return on investment.
These conditions will not last forever, in fact there is the chance of a global downturn, or even a depression, as the world recovers and pulls out of this pandemic.
What does all this mean for real estate agents? Well, never has there been a better time to MOVE STOCK. But how do you get it and how do you get it quickly? Tune in for my upcoming FREE half-day Real Estate Brilliance webinar where I will be going through 10 ways to list and sell 100 properties in 100 days. It is possible and now is the time to act!