For the first time since August last year, property price growth has slipped negative. This sounds pretty bad, but is it really? Let’s unpack it a bit further.

A slow down in the market was inevitable, with everything that’s going on. With a 0.06% drop, the market is actually showing itself to be quite stable, compared to other markets. A 0.06% drop is nothing compared to the 20% drop of the ASX in March.

Auction clearance rates are dropping, another one of those negative statements. But if we look further than that, the supply of new listings has also dropped. This means that there is no panic selling, as was the case during the GFC. People don’t need to sell to make ends meet. They can just ride the storm and pick a better moment to sell. With the significantly reduced interest rates, plus government assistance, we’re well positioned to ride it out.

The important message to take out of this is that owners are holding on to their properties, not selling short term, which is a good indicator of what is likely to happen when restrictions are being lifted: a property market that is very much alive.
So instead of focusing on the short term issues, we owe it to ourselves to look at this as a short term inconvenience, a hurdle to pass over. Not selling means not capitalizing on loss.

Stick around and the rebound will surprise you.