Has COVID-19 Reduced Property Prices?

This is a tough call and I should mention that I don’t have a definitive answer for you but many financial experts believe that the effects of COVID-19 won’t be kind on the property market. As a result, valuers are being quite cautious when they value properties for new purchases.

This means that it’s tougher to get finance on a property of you’re looking at an 80% or above lend. This is because the banks will expect you to either cover the shortfall in value with your own savings or through a guarantee of some sorts. Otherwise, if the value is significantly lower than expected, or if the buyer can not cover the difference, the bank may choose to not proceed with finance.

This would be pretty tough news for any first home buyer but it’s a real possibility and something that’s happening a little more than usual in the current climate. Again, the reason for this is because valuers are being cautious and state that in their reports as well.

I cannot say for certain if property markets have been taken a dive yet or if they will in the near future but if valuers are making it harder for buyers, people are on lower incomes and with no auctions yet, I can’t see it being a good thing for property values either. Only time will tell how this pandemic will affect us in the long run.

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