Melbourne’s clearance rate was an impressive 76% on the weekend – up from 71% the previous week and 60% this time last year. In fact, across the city, the average clearance rate for the month of July was at its highest point since October 2017. However, stock levels remain low, with just 376 auctions held, compared with more than 500 during this week in 2018.
The market is certainly at an interesting point at the moment. While it’s a no-brainer that the many recent positive changes to the housing market are driving renewed confidence, potential vendors are still proving somewhat reluctant to list.
Values have stabilised, and it seems clear that the low point of the market is behind us – but we’re yet to see a real surge in new listings. This scenario isn’t unique to the Melbourne market – CoreLogic recently reported that across Australia, the number of newly-advertised properties is down more than 20% on last year. Similarly, the total number of properties for sale (both new and existing listings) is down 3.5% on this time last year, and at the lowest level we’ve seen for a while.
Lower stock levels are certainly driving increased competition, with multiple buyers bidding at most auctions and large crowds keen to see the outcome for everything from multi-million dollar homes to modest fixer-uppers. Our Williamstown office sold this week’s most expensive Melbourne home, achieving a sales price of $2.83 million for a California bungalow in Newport with a seamless modern extension. Four bidders fought it out in front of a crowd of around 200 people, showing that there’s always a strong market for top-quality homes.
If you’re considering selling, now is a great time to get a jump-start on the competition before we’re into the spring sales period. Listing your property before the inevitable seasonal rush will allow you to take advantage of renewed buyer confidence due to lower interest rates and more flexible access to credit – and you won’t be competing against such a large pool of alternatives.
It’s easy to underestimate the amount of time that it takes to prepare and list a house for sale – generally between one and three months. Additionally, while Spring is a great time of year to sell, the AFL finals and Spring Racing Carnival can make scheduling sales campaigns a little tricky with several weekends less-preferred for inspections and auctions.
Our experienced team are specialists at working with vendors to get their homes sale-ready fast. We can help you to source and coordinate trades, gardeners and stylists to ensure your property is looking its best in record time. Alternatively, we might recommend that you’d be best taking your home to market in as-is condition to take advantage of the current listing lag.
Get in touch with your local Greg Hocking office for an update on what’s happening in your area.