Confidence in some sectors of the real estate market has been hit due to coronavirus setbacks – but there are promising signs for safe navigation through more economic turbulence.
The Federal Treasurer Josh Frydenberg prepares to hand down his ‘mini’ Budget for 2020-21 on Thursday, with the national economy again under siege due to the resurgence of COVID-19 in Australia’s two major cities Sydney and Melbourne.
Thus far, property prices across the country have remained relatively stable during the pandemic, in stark contrast to the doomsday scenarios of a 30 per cent crash.
The stock market has reacted positively to news a vaccine could be available by the end of the year and the extension of the JobKeeper and JobSeeker programs beyond September have avoided fears of fiscal cliff.
This will ensure more of a soft landing when government support programs do come to an end.
That timeline means that the real estate market should be able to enter the beginning of 2021 with buyers and sellers having a better idea of what lies ahead.
“The budget will be critical in supporting the incomes, well-being and confidence of Aussies adversely impacted by pandemic shutdowns,” CommSec chief economist Craig James said.