Hi,
The Domain auction clearance rate for Melbourne over the weekend was 72% on what was a high volume weekend. 618 auctions were reported to Domain with 448 selling, 55 were withdrawn and 115 passed in. In comparison, the same weekend last year resulted in a clearance rate of 59%.
The Melbourne property market is slowly waking up and confidence is building. Over the weekend there were some strong auction results (albeit sporadic) and generally more bidders at auction. We haven’t seen any evidence yet of strong price growth yet… only marginal growth this year which suggests the market is stable.
There is usually a lag from the time there is substantial property price growth and the time it is recorded and reported. Many buyers don’t have the confidence to buy until they see evidence of price growth, which is when buyers can miss out on valuable capital growth in their assets.
We experienced an influx of interstate investors circling late last year and early this year before going quiet ahead of the federal election and Trump’s tariff war. Over the past two weeks, we have again received strong enquiry from interstate investors and with tomorrow’s likely announcement of an interest rate cut, many of these investors are motivated to buy now.
If you are considering buying a property in Melbourne or Geelong, I would suggest now might be as good as time as any. Historically, Melbourne has achieved strong capital growth and it has not been seen that for many years now. With interest rates coming down, population growing and buyers circling (particularly interstate investors), all signs are indicating we could see some reasonably property price growth this year.
Have a great week.
Kim Easterbrook – Managing Director
