Hi,
The REIV auction clearance rate remained steady at 78% with 358 properties selling at auction, 157 before auction and 149 auctions passing in. There were an additional 313 private sales. In comparison, there were 936 auctions reported to the REIV last year resulting in a clearance rate of 72% The final REIV clearance rate for last week was 812 auctions resulting in a clearance rate of 75%.
CoreLogic last week released its September quarter Home Value Index showing that Melbourne property prices declined by 1.1%. While Sydney, Brisbane, Adelaide and Perth continued in the upwards direction, the rate of growth is slowing. Hobart, Darwin and Canberra also experienced in a decline in property prices. Regional Victoria overall dropped 1.4% which was the largest decline in property prices in the country. The tree change/sea change Victoria experienced over the Covid years has lost its momentum with some choosing to sell and move back to the city or interstate.
Whilst there is a continuation for some Victorian investors to exit the property market. The downward direction of property prices is mostly due to the increase in stock on the market, which is a usual trend for Spring. Properties are taking longer to sell with average days on market increasing from 27 days to 41 days. Spring is looking to be a great time for buyers to enter the Melbourne and Regional Victoria property market.
Corelogic also reported an increase in consumer confidence with inflation easing and the next interest rate move looking to be an interest rate cut. Over the next six weeks leading into Christmas, there should be a further increase in properties coming onto the market which should keep the buying conditions favourable to buyers. But my feeling is that this could be shortlived and there is a question mark as to whether stock levels will be as healthy in the New Year as they are now.
That all being said, it is still to be noted that good quality properties in Melbourne have still been selling well under competition. The auctions we attended on the weekend all had active bidding from multiple bidders and sold under the hammer.
Have a great week!
Kim Easterbrook – Managing Director