Hi,
The clearance rate is sitting in the high 70%’s which is a good result but not unexpected. As Christmas approaches, vendors are keen to have their property sold as the ‘psychological’ deadline approaches. This means that many vendors are prepared to meet the market in order for their property sold before Christmas, even if it is less than they were hoping for.
Over the weekend, 856 auctions were reported to the REIV resulting in 466 selling at auction, 198 selling before auction, 1 selling after and 191 passing. Volume is slightly down on last year where there were 995 auctions reported for the same weekend also resulting in a clearance rate of 78%.
There is a lot of talk about Melbourne property of late and a general feeling that property is undervalued. Property prices in most capital cities across the country have had huge gains over the past 12 months with Melbourne’s property price performance being one of the weakest.
Currently, Sydney’s median house price is 70% higher than Melbourne, this is the largest price gap in 20 years. However, there predictions by many that the gap between Sydney and Melbourne property prices may decline as projections are still in place that Melbourne’s population will match Sydney’s by 2036.
We can already sense confidence in the market is increasing (albeit slowly) and there is strong buyer enquiry from interstate investors who are wanting to get into the Melbourne property market.
Whilst we know a recovery will likely be slow, and unlikely to happen until interest rates start coming down. I do believe this gives us a small window where the conditions for buyers will be favourable and a good time to enter in the market. Buyers sitting on their hands waiting for interest rates to come down put themselves at risk of not taking advantage of the current buying conditions which we are expecting to turn mid next year.
Have a great week!
Kim Easterbrook – Managing Director
