April market peaks, but might settle
In April the Real Estate Institute of Victoria (REIV) recorded more than 2,941 auctions. 2,140 properties sold, 1,669 at auction, with 439 passed in. 467 properties were sold before auction & 4 properties were sold after auction. The clearance rate averaged 83.75% slightly up on March’s 83%.
Despite recording one of the largest ever first quarterly value increases, some analysts are suggesting Melbourne’s red hot market will cool a bit. Melbourne metropolitan house values rose an outstanding 8.8% over 2021’s first quarter reaching a record median of $1,004,500 (REIV).
Auction clearance rates are running very high and it’s a very good time to sell a skillfully presented and marketed home. Reserves for some top properties are still being smashed. Any slowdown at this point may apply more to the rate of value growth.
Will the market settle now?
REIV President Leah Calnan is expecting the market to settle, with the approach of winter and an increasing atmosphere of normality. More sellers are coming onto the market now, easing the log jam of frustrated buyers that backed up across 2020. Investors are cashing in too, adding stock to the listings.
Possible causes for an easing market
According to CoreLogic there are several signs of a cooling market ahead:
Market peaks always find a ceiling – marked by sellers over-expectations and by borrowers’ caution.
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