When there are over 1100 sales reported to the REIV, more than half of them auctions, then the clearance rate can be seen as one indicator of how the market is fairing. 71% of 687 auctions reported to the REIV cleared over the weekend. Volumes were above average at $366.23M and even private sales chimed in with over $300M worth of sales last week.
Over the weekend good properties attracted a lot of interest. 41 Silverdale Road Eaglemont sold under the hammer for $1.167M. Whilst the number represented very accurately what the property was genuinely worth, it was of some note that there were six bidders willing to be in the contest, 4 of them within the last 20k.
Good properties are still selling extremely well. Do not think a hung parliament, the “train wreck” US housing market or the ridiculous talk of a price bubble will stop switched on investors taking over the market place. Most investors are looking at the benefits of the Melbourne property market, not media headlines designed to sell newspapers.
The Melbourne property market has performed very well over the last fifty years, and if you look at all sensible indicators it should continue to do so. The talk at the coalface from most agents is the stock levels should have their natural increase come October and with a few more investors hitting the market we should have a good balance spring season.
Look for a rise in the top third of suburbs in Melbourne of about 5% over the next three months, followed by the Christmas hiatus and then a balance steady growth throughout next year. Factors to watch out for are unemployment rate and the immigration figures as well as housing starts and any increases to first home buyers schemes.
If you are interested in buying property think about attending one of our many seminars or call us for a no obligation meeting.