Hi,
The clearance rate dipped slightly in Melbourne and so did the auction numbers with 451 auctions reported to Domain. Of these, 313 sold, 41 were withdrawn and 97 passed in. In comparison, the clearance rate last year was 62%.
The RBA announced a shock decision to keep interest rates on hold last week. This was despite recent data showing economic growth is weakening and inflation is easing however unemployment is still low. The RBA is waiting for the quarterly inflation data to be released and also wanting to gain a clearer understanding of Trumps new global trade tariffs’ before reducing the cash rate again.
Despite interest rates being on hold, our team have certainly seen an increase in buyer confidence and activity in both the Melbourne and Geelong property markets. Perhaps the stall in rate cuts may just ease the pressure a little but this will be shortlived if interest rates are dropped again at the RBA’s next meeting next month.
On a completely separate issue which is of high concern to me, is that myself and my team have received multiple reports of interstate buyer agencies representing mainly investors, with purchasing properties in Victoria unlicensed. To work as a buyer’s agent in Australia, you must have a real estate licence. And to work in each individual state, you must have a licence in the relevant state you are working in.
Shockingly, some of these companies are even purchasing the properties sight unseen. They do not have someone on the ground here, who is qualified to inspect the properties in person. Some are relying on the selling agent to do a video of the property and others are relying on building inspection reports. This is high risk and unethical.
It is highly important if you are deciding to invest here, that you engage a buyer’s agent that is not only licensed, but has a high level of real estate experience in the areas that you are wanting to invest. They need to be on the ground, inspecting, recommending and rejecting properties, have a full understanding of the local market including the demographic of the area, buyer demand, rental demand, rental compliance and the list goes on.
When selecting an interstate buyer’s agent whether it is to buy a house or investment property, check their credentials, accreditations and check they are licensed in the state you are wanting to buy. For Victorian purchases, this can be done on the Consumer Affairs Victoria website.
https://registers.consumer.vic.gov.au/EAsearch
Have a great week.
Kim Easterbrook – Managing Director
