Despite the school holidays and wet and windy stay-at-home weather, Melbourne’s property market posted another solid result on the weekend. The REIV is reporting a clearance rate of 72%, up 10% on this time last year.
Market conditions continued to improve across Australia throughout June, particularly in our capital cities. Melbourne’s average dwelling value was up 0.2% for the month – our first increase since the market peak in November 2017. On the back of these results, CoreLogic’s head of research has suggested that lower home loan rates and stronger market sentiment are already having a tangible impact.
Across the Greg Hocking network, we’re certainly seeing much more activity than we have for most of 2019. Buyers are sensing that they may have missed the low point for property prices and are keen to take advantage before the market recovery really gains momentum.
While winter is often a quieter time for inspections, this year is bucking the trend. We’re dealing with more groups than we’d predicted at open inspections, and at auction, there’s strong competition with multiple buyers raising their hands for properties that would likely have been passed in just a month or two ago. In fact, Melbourne’s inner south and inner east achieved clearance rates of 78% and 83% respectively over the weekend.
Low stock levels are certainly playing a role here – people have been reluctant to list in an environment of declining sale values and uncertainty about the federal election result. With property values looking to have stabilised, we’re fielding plenty of appraisal requests and speaking to vendors who have been on the fence about listing for some time but are looking to get serious about selling now that things look more promising.
If you’re considering selling, there’s definitely an advantage in being an early mover. It takes most vendors between one and three months to move from “let’s sell” to seeing their listing live online, which means low stock levels are likely to be a factor for the next few months. If you feel you’re almost ready to list, make getting the ball rolling a priority – starting with choosing your agent and getting your paperwork in order. Even if you have repairs and maintenance jobs you want to address before you list, speak to a trusted local agent today to get their perspective on whether you’d get more value from taking your property to market now in as-is condition.
The market has seen a trifecta of fundamental changes recently with a double interest rate cut, the relaxing of APRA’s loan serviceability buffer and the Coalition’s election victory. Whatever your position in the property market, make the new financial year a time to get your property affairs in order. Speak to your bank about your borrowing capacity and get an up-to-date valuation of your property (if you’re already an owner).
Your local Greg Hocking office can provide you with an up to the minute assessment of what’s happening in your area and a no-obligation appraisal. Get in touch today.