- Currently, agents can only do viewings one buyer at a time
- Prices are not suffering due to the lockdown
- Supply remains a constraint throughout Sydney and some regional areas
Real Estate Institute of New South Wales (REINSW) CEO, Tim McKibbin, has said that despite numerous restrictions, real estate deals and prices are not declining due to Sydney’s fortnight-long lockdown.
Currently, agents in New South Wales can only show one buyer through a property at a time along.
“Agents are proving adept at getting deals done and prices are not suffering,” said Mr McKibbin.
Lockdown aside, Mr McKibbin said agents remain bullish with demand remaining strong although some potential vendors are delaying sale plans due to fears they can’t find a suitable alternative to move into.
“The supply issue is systemic and the infrastructure funding announced in the Budget, intended to unlock housing supply, will take time to deliver tangible impacts. Even then, it’s not enough.”
Tim McKibbin, REINSW CEO
In the medium term, he expects prices to be buoyed by demand, referring to CoreLogic data released last week that showed a slowdown in growth, although there was still significant growth nonetheless.
With the Reserve Bank meeting tomorrow, he expects the cash rate to remain on hold for some time as most economists had predicted, however, he believes the increase may come sooner than expected.
“Some major lenders believe an increase could occur next year, ahead of the RBA’s previously stated timeline, but only time will tell. COVID-19 has a way of shifting the goalposts rather quickly.”
“The pace of price growth may be easing but it remains to be seen if the Budget outlook that tips house prices will peak at the end of the year will prove premature.
Prices continue to grow not just in metropolitan markets but also in regional areas, where price growth is expected to continue well into 2022.
“Pent-up demand in select metropolitan markets such as the eastern suburbs should also support continued price growth beyond the end of the year,” he said.
“All in all, the current lockdown will hopefully only be a temporary blip in the current trajectory of the market.”