Most sought after homes: buyer demand for entry-level housing remains strong during COVID-19

 

Many were outbid on properties earlier this year and last year, and with pre-approval for a mortgage from the bank, have stayed committed to purchasing.

Agents reported entry-level properties had some of the standout results over the weekend, with some properties attracting multiple bidders who drove up the price.

Starr Partners chief executive Douglas Driscoll said the bottom end of the market was moving at a different speed to the premium home sales market, which had “further to fall”.

This was partly the result of “aspirational” buyers – those who wanted to upgrade to a better home or area – putting their plans to purchase on hold during the COVID-19 pandemic, Mr Driscoll said.

Meanwhile, buyers who had to move out of necessity, including those who had outgrown their properties, were still competing for properties, he said.

Such buyers were often searching for properties in popular first-home buyer markets such as the suburbs near Parramatta, Mr Driscoll said.

“If you’re expecting a child, relocating for work and you’re in an industry that’s not as affected (by coronavirus) you will still need to move,” he said.

McGrath-Newtown agent Adrian Tsavalas said there were still serious buyers competing on sales, particularly first homebuyers.

Mr Tsavalas sold a Marrickville home on Saturday for just under $700,000 – a price allowing first homebuyers to claim a discount on stamp duty – and said there were multiple pre-auction offers.

“Some buyers have been looking for a year and being home all the time has pressed the need to move,” Mr Tsavalas said.

“Not everyone works in an industry affected by coronavirus and some still have good job security.”

LocationScore.com.au property analyst Jeremy Sheppard said there was a historical precedent for entry-level housing markets to be more resilient during downturns.

Sydney’s cheaper markets recorded smaller declines in prices during the most recent downturn in 2018 and during the global financial crisis in 2009.

The city’s top markets recorded much greater falls in prices but were also among the first housing categories to recover when buyer demand began to pick up, Mr Sheppard said.

This was partly because pricier, inner city markets tended to attract the most speculative purchasing activity from investors, he said.

Weekend sales to first-home buyers included a four-bedroom house on Sunny Crescent in Punchbowl, which changed hands for $960,000.

The first-home buyer who placed the winning bid was up against two other registered bidders.

Source from : realestate.com.au