Hi,
A big weekend of auctions with 941 auctions reported to Domain with the Melbourne auction clearance rate achieving 71% over the weekend. 668 properties sold, 200 passed in and 73 were withdrawn. In comparison, the clearance rate for the same time last year was 60%.
The Melbourne property market will quieten down over the next two weeks due to next week’s AFL Grand Final and the commencement of Victorian school holidays. We will then enter into the ‘Spring selling season’ before it quietens down again mid December to late January.
The feedback that I am receiving regarding Spring stock levels is that the amount of properties coming to market will rise, but not as many as the selling agents would have hoped for. Many investors that had planned on selling have already done so. So that leaves owner occupiers and most are only selling due to personal circumstances, that being either divorce, death or financial pressures. It is looking like demand for property will continue to outstrip supply for quite some time and there will be a continuation of pressure on Melbourne’s property prices.
The RBA are due to meet again at the end of this month and it is looking likely that interest rates will remain on hold due to inflation rising and the unemployment rate declining in July. This should help prevent the Melbourne property market going into any strong price growth and allow it to continue to grow at a slow and steady pace (which is much more sustainable).
Have a great week
Kim Easterbrook – Managing Director
