COVID19 – Panic Hoarding is turning into Panic Buying!

With the social lockdown looming in Australia, the property market has been a question on most minds as to how it will fare.

In Melbourne, it appears that panic hoarding has now turned into panic buying, with buyers snapping up properties before auction in the fear that they would miss out on the opportunity!

According to YPM Group, they have already seen a flurry of pre-auction transactions and off-market deals taking place in a hurry.

“Panic buying is happening. A bit like toilet paper it feels,” said Cate Bakos, buyer’s agent with Cate Bakos Property. “I had four auctions scheduled this Saturday and five next Saturday. Now I only have one on Saturday and one for next week.

“All have either been sold prior or have pending mid-week auctions. These pre-auction sales are being triggered by feisty buyers.”

All three properties she booked for next Saturday had received offers that were too good to refuse and were well above the pre-COVID-19 appraisals she had calculated, Ms Bakos said.

“So while I can see that some vendors are nervous or rattled, there appears to be enough aggressive and motivated buyers to patch the gap,” she said. “I think people who are particularly keen to buy a home are worried that if we have a social freeze, they will be chopped out of the market and then slammed when things improve.”

Buyer’s agent Lauren Goudy of Rose & Jones said she was seeing more vendors willing to negotiate, even in high demand inner Sydney areas.

“I have seen more emails about price reductions or adjustments this week than in a long time. I’m certainly using it to our advantage in negotiations for my clients,” she said.

Sydney-based property buyer Victor Kumar of Right Property Group said the major banks’ move to offer mortgage reprieve to eligible home owners would help calm both buyers and sellers who were growing jittery each day.

“I think it may take some fear out of the market for a lot of people especially those who have just bought their homes and worried about their job,” he said.

To read the full article from YPM Group, click here.

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