Hot Property: The biggest property headlines from the week 3-7 August

We hope it helps inform you of the biggest issues shaping the mortgage and property markets.

Melbourne businesses forced to close, banks to remain open

The Victorian Premier has announced that thousands of businesses will need to shut their doors this week, including financial services, but essential services – including bank branches – will remain open.

How low could house prices go?

With unemployment at a 20-year high, immigration becoming non-existent and interest rates having hit the lower bound, what can we expect from house prices? And should we be worried about it?

Looking at “the big picture” and key economic drivers, Nikko Asset Management’s Chris Rands is predicting house prices could fall further than the forecast 5 to 10 per cent that most expect over the short term and into the 10-20 per cent decline range.

RBA reveals August cash rate

The Reserve Bank of Australia (RBA) has announced the official cash rate for August, with Melbourne’s stage 4 restrictions weighing heavily on the national economy.

The RBA has held the official cash rate for the fifth straight month at 0.25 per cent, following an out-of-cycle cut in March.

The new hotspot for sea-change investors

According to McGrath Estate Agents, the Thirroul property market is one to watch, with more Sydneysiders looking to move to the hotspot as a result of relaxed working conditions off the back of COVID-19. Thirroul is located south of Sydney, approximately 13 kilometres north of Wollongong.

“The out-of-area migration from Sydney is becoming increasingly popular. Thirroul is only 80kms from the south of Sydney, and many more people are becoming comfortable with this commute to put themselves in a better financial position,” said Vanessa Denison-Pender of McGrath.

Perth sees sales jump 68%

The REIWA has found that volumes were up 68 per cent in July compared with April 2020.

REIWA president Damian Collins said, “While sales activity was quiet during the initial stages of the COVID-19 [lockdown] restrictions, it is great to see levels pick back up to where they were before the pandemic hit.”

“While there are no surprises with the increase in land sales for the month, which saw a 121 per cent increase compared with April, it was pleasing to see that both houses (up 58 per cent) and unit sales (up 51 per cent) also saw a significant increase,” Mr Collins said.

For more analysis and insight into these stories, tune in to Momentum Media’s new live talk show on Facebook, What’s Making Headlines, featuring Momentum Media’s executive editor - real estate, Phillip Tarrant, and business coach and Real Estate Gym trainer Tom Panos on Thursday afternoons.