Every week without fail I am asked when the market is going to fall.
Every time my answer is the same: “When people stop moving to Melbourne.”
This mid-autumn market continues its unprecedented period of capital growth – 59 months in a row – including house value growth of 13.1% in Melbourne in the past year, according to CoreLogic data.
This unstoppable demand for housing is caused by more people on deck.
Latest figures from the Australian Bureau of Statistics show Melbourne’s population grew by more than 107,000 people in the past year.
To highlight the source of current pressure, Melbourne’s net population had been growing by about 85,000 annually since the global financial crisis.
So, in this year, we have welcomed an extra 22,000 residents on top of our usual influx from overseas and interstate.
Those individuals have needed to buy and/or rent housing and have entered the property market on top of pre-existing buyer levels.
It is little wonder weekly auction clearance rates have tracked at about 80% on average since February.
This week 1,456 auctions were scheduled across Melbourne; 81% of reported results sold, CoreLogic says.
Buyers just cannot find enough housing to meet their numbers and this puts upward pressure on prices.
Economic blips are inevitable long term as local and global economics impact consumers.
But with Melbourne’s bedrock of jobs, lifestyle and infrastructure, current talk of “falls” and “crashes” is out-of-step with reality.
In my seasoned view, our market will stay upright into the 21st century.
If you are thinking of selling this season, call us today to arrange an obligation-free appraisal.