CEO Message – June
June 9, 2020 Corporate News
As restrictions continue to ease in response to COVID-19, we can only expect life and the property market to stabilise and regulate as we begin to move towards a sense of normality.
As of this month, auctions and property inspections can now have up to 20 attendees plus those necessary required to facilitate the process. This is great news, both for our industry and for the many active buyers in our database. In Victoria alone, digital inspection video views have increased by 104%, and searches in the buy section of REA are up 23% month on month, and 27% year on year.
Housing values have only just begun to edge lower in May, with Australian dwelling values experiencing their first month-on-month decline since June last year. The national index was slightly down by 0.4% over the month, with five of the eight capital city regions recording a fall in values. A fall of less than half a percent in the current climate highlights the resilience of our property market to withstand economic distress.
That being said, the Australian economy is going through a difficult period, and is experiencing the biggest economic downturn since the 1930s with more than 600,000 people experiencing job loss. Household spending has weakened considerably, and investment plans are being deferred or completely cancelled. The RBA announcement made on the 2nd June 2020 to hold the cash rate at 0.25% was widely expected and predicted. However, as the number of Coronavirus cases in Australia continues to decline, the subsequent easing of restrictions means a recovery in the national economy will finally be able to commence.