December brings an end to a rollercoaster 2022
Over December’s first three weekends the Real Estate Institute of Victoria (REIV) recorded more than 2,587 auctions. 1,520 properties sold. 1,129 at auction, with 724 passed in. 391 properties were sold before auction & 0 properties were sold after auction. The clearance rate averaged 68%, on par with November’s 68%.
What a rollercoaster year we just had! We started with a market near its peak but rising inflation and interest rates brought an end to most of the steep value growth most parts of Melbourne had been enjoying. As we end the year the economy is still resilient though, supported by historically high employment figures, which sustains borrowing confidence and ability to meet mortgage payments.
What type of home is in most demand?
Buyers are still preferring ‘turn-key’ homes they can enjoy immediately. Steeply rising building material costs and supply chain problems across 2022 makes renovating very expensive and difficult at the moment. So attractive properties needing no urgent improvement are the hottest ticket in town. And for the seller, Vendor Marketing can add considerably more value with our advice for pre-sale home preparation and presentation – just one of many strategies we employ that ensures you achieve the maximum sale price possible.
Where is the market headed in 2023?
While Melbourne’s more expensive suburbs were more susceptible to value declines over the second half of 2022, zones with more affordability like outer metropolitan areas, where borrowers don’t have to go so far out on a limb, are doing much better in holding value.
What happens next with the market depends on just where interest rates go. The cash rate crept up to 3.1% in the year’s second half, which resulted in a quieter than usual Spring market. Market sentiment will be tested further as loan customers outstanding fixed-term mortgages expire across 2023, and people have to reboot, with higher repayments. But great homes in good condition will sell well – especially if you have Vendor Marketing by your side.
Vendor Marketing sends Seasons Greetings to all our clients and connections and their families, with our best wishes for a great holiday break and a happy and prosperous New Year!
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