April numbers break records. Supply going down, prices up.
April’s 5 weekends (with no stats for Easter) saw in excess of 3509 auctions reported to the Real Estate Institute of Victoria (REIV). More than 2847 sales were recorded. Approximately 662 properties passed in with 257 of those on a vendor bid. The clearance rate averaged 79%, up on April last year at 73.5%.
Melbourne’s powerful auction churn rolled on with red flags flying. April auctions were the highest on record for the month – more like a Spring market than Autumn. Low stock in urban Melbourne keeps pushing values up, with higher than expected prices achieved for homes and apartments. Looking forward to Winter with its traditionally lower supply, demand is likely to see rising prices continue.
With price growth surging above predicted levels, Investment Bank UBS joined the many other institutions warning the Melbourne/Sydney property market has peaked. But determined buyers weren’t put off.
April saw Consumer Affairs Victoria act on under-quoting with new regulations. From May 1, the advertised price must be either a single figure, or a price range not greater than 10 per cent. This is a bit of a sticky wicket, with many properties on April’s last weekend selling more than 10% above expectations including homes in Carlton, Brighton, Kew and Sunshine. And dozens of properties sold more than 15% above reserve (Domain, The Age).
April brought another boost for first-home buyers with new Federal Government salary-sacrifice style tax breaks on savings. Getting in soon applies more than ever, because the leg-ups for first-home buyers will create rising demand and values for entry level properties.
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