Hi,
According to Domain, the Melbourne’s auction clearance rate reached the highest levels since May 2023 which shows the property market is improving and buyer confidence is growing. There were 658 auctions reported to Domain with 491 selling under the hammer, 97 passing in and 70 were withdrawn resulting in a clearance rate of 75%. The same weekend last year achieved a much lower rate of 57%.
The Melbourne property market is in recovery mode and property prices have increased for five consecutive months in a row (according to Proptech). This is likely to continue as interest rates slowly decline further which is widely predicted.
The latest inflation data suggests that inflation is coming down faster than expected with the latest results for the month of May coming in at 2.1% which is a decrease from 2.4% in April. Trimmed inflation (this excludes the most volatile components in the CPI) was 2.4% in April down from 2.8% in April.
The RBA are due to meet next week and many are expecting an interest rate cut to happen in July rather than August. Many are predicting that there could be another 3 interest rate cuts this year which will likely result in further increase in property prices.
More and more auctions are now attracting multiple bidders. The auction of 29 Forest Street, Collingwood gathered interest from multiple parties. It is three bedroom, two bathroom home with no car parking and located very close to Alexandra Parade. The price guide was $1,520,000 to $1,580,000 which was raised from $1,450,000 to $1,550,000 prior to auction. The bidding started at $1,500,000 and the property sold for $1,650,000 under the hammer.
Have a great week.
Kim Easterbrook – Managing Director
