The autumn selling season is up and running, or should I say racing. The REIV clearance rate for the first Super Saturday of the season has come in at an amazing 75% from 1100+ auctions. Looking back over the records, I cannot see this clearance rate on this many auctions since March 2010 and before that December 2009. With stock levels this high and clearance rates up as well, there will be many buyers desperate to purchase over the next couple of months.
Change in market sentiment happens over time. Even if the economic figures “blow up” with unemployment going off the charts, it will still take a few months to filter through, and if the economic news is bland, then we can assume we will see more of these huge clearance rates, and with them, high numbers of buyers trying to enter the market before house prices climb.
You need to understand, that even in a downturned market the houses prices in stable, sought after suburbs of Melbourne, simply stabilise. They do not tend to drop. At the end of 2009 the median house price in Melbourne was $420k. There was a massive upsurge in early 2010 and then a slow down after ANZAC day in April. The median for 2010 still went up by $75,000 (17%) and only dropped $3000 (0.6%) in 2011 and a further $12,000 (2.4%) in 2012. These are Valuer General figures, so they are based on everyone that paid stamp duty not a small sample, as many of the data companies use.
Anyone considering buying property this year should be looking sooner rather than later.
If you need assistance with buying, leasing or selling property in this market, please feel free to call us anytime.
Ian James
Director
JPP Buyer Advocates