August was a strong month for the Melbourne property market – values were up 1.4%, compared to a national average increase of 0.8%. For the national property market, it was the first time prices have increased since October 2017. Closer to home, we’ve had capital gains in Melbourne for the last three months – but August’s result is by far the strongest.
Tim Lawless, head of research at CoreLogic, was positive about the lift in values: “The August figures really have taken quite a step change upwards, which is a much stronger rate of growth than what we would have expected. The significant lift in values over the month aligns with a consistent increase in auction clearance rates and a deeper pool of buyers at a time when the volume of stock advertised for sale remains low.”
My observation is that while buyer confidence has really bounced since the federal election, vendors haven’t been as quick to respond – so new listings and overall stock levels are generally lower than we’d expect. Now that spring is here, we’ll see a bit of a kick with more properties steadily flowing onto the market – however, it’s fair to say that we’re likely to see lower-than-usual stock levels for the next couple of months at least.
If you’re looking to sell in 2019, there’s a real opportunity to take advantage of the competition being created by fewer homes for sale. Where a year ago only one in every two houses taken to auction was selling under the hammer, today, a handful of serious bidders at most auctions are ensuring reserve prices are reliably reached and exceeded – often by a significant amount.
The team at realestate.com.au are reporting a 25% increase in search activity on their website since last spring. Changes to the APRA loan serviceability buffer mean access to finance is easier, and getting a home loan is cheaper than it was this time last year due to interest rate cuts.
Speak to your local Greg Hocking office to find out what’s happening in your patch and get an appraisal of your property. There’s always a market for quality homes – particularly when stock is limited.
If you decide to list, we can work with you to get your property sale-ready fast so that you can take advantage of current market conditions. While we’re seeing fewer off-market and private sales than we were this time last year, these more discrete approaches are still an option if you’d like to avoid selling by auction. We can take you through the pros and cons so that you can make an informed decision.