Melbourne Property News Monthly Wrap – August 2022

Spring is here! A great time for home sellers

Over August’s four weekends the Real Estate Institute of Victoria (REIV) recorded more than 2,095 auctions. 1,372 properties sold. 1,060 at auction, with 611 passed in. 310 properties were sold before auction & 2 properties were sold after auction. The clearance rate was 69%, up on July’s 66%.

With sunny days and blooming gardens Melbourne homes for sale really can look and feel their brilliant best in Spring. The changing market has not effected Vendor Marketing’s clients as we continue to sell everything, and well! Which proves if you have the right marketing strategy and right selling agent you will get a better sale result.

What buyers want most right now

The right property will still get buyers excited – especially well renovated properties. Because of the current surge in renovating and materials costs, most buyers are looking for ‘walk in and enjoy’ homes. There’s more certainty now the election dust has settled with buyers adjusting to the current arc of interest rate rises (which are still lower than what they were in 2019).

What’s happening with values?

According to CoreLogic (Daily Home Value Index) since Melbourne’s average home value (houses & units) peaked in February this year at $791,999, values have now eased by an average 3.46% (i.e. down $27,467). But typically, within a year or two the next property cycle will start producing value growth again. The median hold period of properties across Australia is over eight years, which allows for at least one expected cycle of price growth.

Unit rents are surging

Melbourne rents are up 2.4% annually. This is the fastest increase in several years and will continue across 2022. Lots of investors sold out during the pandemic which reduced stock. And with Melbourne opening up again a surge in international student arrivals will put even more pressure on rentals. Not so good if you’re renting. But good news for unit owners.

Craig Knudsen
Principal Advisor
Vendor Marketing

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