Forty per cent of the nation’s auction’s were withdrawn over the weekend, with social distancing measures resulting in open homes and auctions banned.
Looking at mortgage rates, consumer sentiment, new lending and auction clearance rates, CBA senior economist Belinda Allen describes these as the best indicators of the direction of housing prices.
“But with volumes now so thin previous relationships may not hold,” Allen said.
“Based on the current movement of all but mortgage rates there does suggest there is downside risk to dwelling prices forthcoming.”
Lawless adds that the extent of the impact on Australia’s property values remains “highly uncertain”.
“Capital growth trends will be contingent on how long it takes to contain the virus, and whether additional constraints on business or personal activity are introduced,” Lawless said.
“Once the virus is contained, we expect economic conditions to quickly improve, driving a turnaround in consumer spirits which should flow through to housing market activity.
“When that will be, remains highly uncertain.”