Hi,
The clearance rate remained stable on a high volume auction weekend. 816 auctions were reported to Domain, of those 589 sold, 149 passed in and 78 were withdrawn resulting in a clearance rate of 72%. In comparison, the same weekend last year produced a clearance rate of 59%.
Interest rates are in much discussion again as the Reserve Bank of Australia are due to meet on the 3rd and 4th of November. Last week, the Australian Bureau of Statistics released data showing that unemployment rose from 4.3% to 4.5% in September which is the highest rate since the pandemic in 2021. In addition, consumer confidence is falling, as to are building approvals. Last week it was looking extremely unlikely that there were to be another interest rate drop, now it is back on the table.
What this means for the property market is if we see another interest rate cut in November, there may be increase in buyer confidence just before Christmas. Melbourne’s property market has been very sensitive to interest rate movement. Everytime interest rates drop, there is an increase in buyer activity. Each time they remain on hold, activity somewhat slows down/stabilises.
Next weekend will be a big test for the property market with almost 2,000 properties going under the hammer. The higher number is a result of the Melbourne Cup weekend where there are only a handful of auctions.
Have a great week
Kim Easterbrook – Managing Director
