Hi,

A big auction weekend resulted in a solid clearance rate of 78%. 747 auctions were reported to the REIV with 404 properties selling under the hammer, 180 sold before auction, 1 after auction and 162 passed in.  In addition, there were 150 private sales.  In comparison, the final auction clearance rate last year was 73% on 986 auctions.  The final result last week was 1,056 auctions reported resulting in a final clearance rate of 79%.

A clearance rate in the high 70%’s demonstrates the market is balanced, transactions are happening, however our experience on the ground showed a mixed bag of results.  Over the weekend, we were successful in purchasing five properties at auction and still in negotiations for two others.  Reserve prices generally were conservative and properties were selling ‘under the hammer’ at lower prices than we were expecting. Great news :).  Also many auctions passed in and selling via negotiations immediately after with vendors meeting the market in order to have their property sold.  We believe the buying conditions will be similar this weekend coming.

2024 has certainly been an difficult year in the Melbourne Property Market.  Lots of uncertainty with increasing interest rates which have now thankfully stabilised.  Investors left the property market in droves due to increases in land tax, rising interest rates and changes in compliance and minimum standards for rental properties.  Many buyers have been sitting on their hands watching the market but not wanting to act.

Now that interest rates have stabilised, confidence appears to be building (albeit slowly) and interstate investors are circling, the outlook for 2025 is much more positive.  I feel it will be a slow and steady start to the New Year.  The number of properties launching in February are on the lower side (according to many Selling Agents we have spoken to).  This should keep the market balanced for the first few months of the year however conditions should still be favourable to buyers to an extent.

As interest rates come down mid next year (hopefully), buyer confidence will likely go up.  Melbourne has not seen any property price growth for quite some time, and declining interest rates could result in slow increases in property prices.

But for now, we have one more weekend of auctions and a week or so left of off market activity then our office will be closed until mid January.  We hope you all have a wonderful break, Seasons Greetings and Happy New Year!

 

From the team at Elite Buyer Agents