Making sense of the 'Corona Property Puzzle'.
Category General
Although the end is nowhere in sight yet, there is a silver lining brightening the dark clouds which also cast their shadows over the property market.
The past few weeks saw an amazing surge of activity in real estate. Although show houses are still prohibited and property professionals must adhere to strict PPE rules, sales are booming. The market is HOT!
The flurry of enquiries culminates, for the most part, into offers to purchase to sellers wanting to sell their properties. The offers come in for much lower than the asking prices, and eventually, only after all parties (the buyer, the seller and the agent) are willing to give a little, a successful transaction is concluded.
The Property Professional with grit, tenacity and excellent negation skills is the essential piece of this puzzle. The current Great Divide between asking and selling prices can only be facilitated by a true professional - a great emergence from The State of Disaster.
Bryan Biehler, Huizemark director and co-owner says, "The market is remarkably busy, but it does take multiple engagements with parties before an offer is finally accepted. Buyers shop around a lot and want value for their money. Realistic and competitive pricing is key for the serious seller."
Another positive outcome of the pandemic is the low interest rate. Thus far the interest rate has been cut five times this year, and especially savvy first-time buyers and investors take full advantage of current conditions.
From a home loan perspective, this is a particularly appealing time to acquire property. Rhys Dyer, CEO of Ooba, said: "After extremely low business levels in April and May, we received a flood of home loan applications in June, up 51% compared to June 2019. This high level of activity has continued into July, with volumes in July up over 60% in the same period last year.
Another upsurge is currently experienced in property, i.e. the influx of applications from people who realise that being employed presents a false sense of security. In a time where job losses are at the order of the day, people with an entrepreneurial spirit and a willingness to upskill are taking up the challenge of starting a new career as property professionals.
To our less optimistic readers, I would like to stress that "Toxic Positivity" is not at play here; astonishing results in sales, rentals and recruiting in July emerged as the pieces of a perfect property puzzle.
Author: Adrie Barnard
