How will coronavirus affect Australia's real estate market and house prices?
It’s one of the most googled questions since the Covid-19 outbreak began: how will coronavirus affect house prices?
The bottom line is it will be negative – prices will go down. People, up until now, have been talking about the property market developing a bit of momentum, with the interest rate cuts we had last year and the easing of credit conditions.
But coronavirus has changed the story for 2020.
The Reserve Bank cut rates soon after news broke of the developing coronavirus outbreak. On its own, that’s positive for the housing market (meaning prices stabilise or go up).
But the reason the bank is cutting is coronavirus is negatively impacting the economy as a whole – there’s no escaping that fact. Yes, the government has released its stimulus package and there may be more fiscal stimulus on the way, but there are limits to what any government can do. There will be negative effects on employment. It will be a short, sharp shock to the economy.
Read more: https://www.theguardian.com/world/2020/mar/15/australian-government-says-a-coronavirus-general-lockdown-remains-an-option
The bottom line is it will be negative – prices will go down. People, up until now, have been talking about the property market developing a bit of momentum, with the interest rate cuts we had last year and the easing of credit conditions.
But coronavirus has changed the story for 2020.
The Reserve Bank cut rates soon after news broke of the developing coronavirus outbreak. On its own, that’s positive for the housing market (meaning prices stabilise or go up).
But the reason the bank is cutting is coronavirus is negatively impacting the economy as a whole – there’s no escaping that fact. Yes, the government has released its stimulus package and there may be more fiscal stimulus on the way, but there are limits to what any government can do. There will be negative effects on employment. It will be a short, sharp shock to the economy.
Read more: https://www.theguardian.com/world/2020/mar/15/australian-government-says-a-coronavirus-general-lockdown-remains-an-option
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