Whilst there was a reasonable 62% REIV clearance rate this weekend and everyone is talking about the spring rush, you need to be aware that the true “spring selling season” starts in about 5 weeks. This is Victoria! This is September! This is AFL Finals month!
There will be some new properties coming onto the market over the next few weeks, but it is really October that the market will increase dramatically. Even the snapper coming into Port Phillip Bay have the courtesy to allow fisherman to see the football finals before beginning the 10 – 12 weeks spanning season that sees fisherman in Melbourne getting out of bed at 4.00am on their days off to catch the wily reds.
The clearance rate has jumped up into the 60’s but the biggest test will come in October. If the owner occupiers who have been sitting on their hands for the past 18 months decide to begin to move, then we will see a better calibre of property coming on to the market than we have seen over the past six months. This will be the catalyst that will push the market up strongly next year.
If the owner occupiers sit tight again through October and November, then I fear we will have another 6 months of stagnated prices in Melbourne. Unfortunately it will not be as easy to tell what the market is doing until we see the results from the Valuer General through February/March next year.
The best buys are the properties that are in need of cosmetic renovation that are well positioned and have good land content. If the properties do not have a WOW factor then buyers are not getting to emotionally charged, and this means if the vendor has to sell then these are the types of properties that are good value.
If you are considering purchasing a property this year, please give us a call and we will organise a no obligation meeting to show you how we can assist you with your purchase.
Ian James
Director
JPP Buyer Advocates