Two family brands teamed up to host a webinar which provided customers “real-time information” to inform their property decision-making amidst the economic instability and general confusion of the last several months.
Loan Market executive chairman Sam White and Ray White Group managing director Dan White highlighted the “deep resilience” of the Australian property market in their explanation to the nearly 5,000 viewers of why now is the time to sell.
“People looking to sell need to know that the real estate industry has been very active since restrictions started two to three months ago,” Dan White said.
“The competition for property is as strong as ever – and with demand very much outstripping supply right now, there’s never been a better time to list your property.”
According to the group head, "the statistics tell the story." Year-to-date, the Ray White website has had 1.8m users visit, up 2.91% compared to the same time last year. Over April and May, the company served nearly 9,000 Australian families and businesses, representing over $4.4bn of property. The group conducted 1,025 auctions, with a better auction day clearance rate than the same months last year and with prices holding strong.
Loan Market’s Sam White spoke to the finance market and the support Australian banks have shown to buyers, while also highlighting a few key risks for borrowers currently looking to purchase a home.
“Banks and other major lenders have generally been very aggressive in trying to attract customers. We’ve seen this through very low-interest rates and specials, as well as banks offering customers cash incentives to refinance existing loans to them,” he explained.
Even with attractive fixed rates starting from 2.09%, Sam White stressed the importance of understanding all the conditions that go along with fixing, such as restrictions around making additional payments.
"[Additionally], there’s never been a bigger discrepancy between lenders in terms of how quickly they can assess an application and provide you with a response," he added.
“Some lenders have been impacted by overseas operations experiencing significant disruptions which has placed great pressure on their service levels.
“We’ve published lender response times ranging from one day to 36 days to refinance a loan. Some lenders are taking up to 15 days to review an application - but some are at two. This potentially places pressure on being able to meet your purchase settlement deadline.”
However, beyond these temporary extra considerations, there is “broad agreement” that Australia’s fundamentals should remain strong post COVID-19.
“Property investment has been, and will always be, a long-term investment,” Sam White concluded.