With the Melbourne Labour Day weekend, the market was extremely quiet. Only 218 gazetted auctions and again a clearance rate in the high 60’s. With the next two weekends we should see sales via auction and private treaty climb back well over 1000 per week.
Obviously most news across the weekend has been overshadowed by the natural disaster in Japan. Whilst we have many friends and clients in Japan that are safe, JPP wishes to convey our deepest sympathies for those affected by the devastating earthquake and subsequent tsunami.
Japan is the third largest economy in the world, and Queensland’s largest export destination. There will be a ripple effect throughout the world as Japan comes to terms with the enormity of the devastation and then the challenges of the subsequent clean up. Whilst exports may be down temporarily, the clean-up and rebuilding will need massive amounts of raw materials. This will most likely make up for any short term downturn in Australia’s economy. Like the GFC, Australia’s economy may slow marginally, but house prices are unlikely to be affected.
Property prices in Melbourne are still finely balanced and in my opinion will stay slightly favouring the vendor for most of the rest of the year. If anything property prices may go up marginally better than 8% -9% if there is not enough stock on the market.
If you are considering a property purchase soon, please do not hesitate to contact us for a no obligation chat.
Ian James