Hi,
The Melbourne’s auction clearance rate is improving weekly as confidence builds in the Melbourne property market. Domain has reported a clearance rate of 75% on 546 reported auctions. 411 selling at auction, 49 withdrawn and 86 passing in.
The RBA will announce the next move with interest rates tomorrow afternoon with the majority predicting another 0.25% cut and more to come throughout the year. This is due to lowering inflation, a weakening economy and global uncertainty. The flow-on effect from this will be rising property prices.
We are already seeing an increase in buyer competition at auctions and under private treaty conditions. We are also hearing reports of some buyers buying sight unseen (a practice we do not recommend). These are conditions we have not seen in Melbourne for a number of years.
The ‘bank of mum and dad’ are out in force for those first home buyers fortunate enough to have that assistance, they have been and will continue to be fierce competition in the sub $1m market. The family home buyer market has been struggling with lack of stock as many families are staying put and not selling.
The next two weeks will be quiet for newly listed properties as many are away for school holidays but stock levels will start to increase for the next two months thereafter. Likely not enough stock to outstrip demand though and we will should continue to see property prices increase throughout the winter period.
Have a great week.
Kim Easterbrook – Managing Director
