Hi,

The REIV auction clearance rate has dipped slightly to 75% on a higher auction volume weekend.  There were 777 auctions reported to the REIV with 424 properties selling at auction, 162 properties selling before auction and 191 auctions passing in.  There were an additional 139 private sales recorded.  For comparison, the same time last year also produced a clearance rate of 75% on 905 auctions reported.

This week will be quiet across Melbourne’s property market due to the AFL Grand Final and the start of school holidays.  But next week we should see an influx of new listings which will go online to start the busy few months leading into Christmas.

There has been a lot of media talk around interest rates in the past week and with the US half a percentage interest rate drop last week, will start putting pressure of the Reserve Bank of Australia to start dropping interest rates however they are expected to hold interest rates at 4.35% for the time being.

CBA are expecting an interest rate cut before Christmas however the other three big banks believe interest rates will start coming down early to mid next year.  Melbourne’s property market is currently somewhat stagnant and buying conditions will become even better when stock levels increase over the coming months.

Now could be as good as time as ever to purchase property in Melbourne as confidence is still low and this is unlikely to change until interest rates start coming down.  Savvy investors purchase in down markets but unfortunately many property buyers wait to purchase until confidence builds and by then its too late.

Vicky Whittaker from our Geelong office attended a hugely contested auction on the weekend at 21 Carnarvon Avenue, Jan Juc.  The dated, but immaculate home superbly located with views of the ocean and a golf course, the property was quoted at $2,100,000 to $2,300,000 prior to auction.  Five bidders participted in the auction where the property was announced on the market at $2,450,000 and it sold for $3,301,000.

Have a great week!

Kim Easterbrook – Managing Director