Melbourne Property News Monthly Wrap – February 2023

February buyers bring a jump in the clearance rate

Over February’s four weekends the Real Estate Institute of Victoria (REIV) recorded more than 2,380 auctions. 1,569 properties sold. 1,196 at auction, with 562 passed in. 373 properties were sold before auction & 0 properties were sold after auction. The clearance rate averaged 72.5%.

Although clearance rates are sharply up on December 2022 (68.5%), February home for sale listings are down 30% on this time last year.

House hunters compete for limited supply

Fewer homes for sale though does offer some good news for sellers, because of the stiff competition among house-hunters who still need to buy. The shortage of supply is also a key factor in keeping home prices stable, giving home-sellers the certainty they need to move (sell their home and buy the next one) in the current market. 

Vendors need to focus on the most important goal – to be absolutely certain you are doing all it takes to maximise your sale price. Vendor Marketing’s proven strategies, based on decades of experience, will make sure you achieve it. 

The latest bank forecasts for interest rates 

Buyers are jittery about interest rates reducing their borrowing capacity but the banks are forecasting better times are coming soon. 

The big four banks expect current rates rises will peak around May at about 4.1%, then stabilise for the rest of 2023. Westpac (Chief economist Bill Evans) has just made the call that interest rates are most likely to start falling across 2024, until steadying around 2.35% by September 2025. That’s looking a fair way ahead, but what it means for borrowers is if they tough-out the conditions in the short term across 2023, the following years will be much easier!

Craig Knudsen
Principal Advisor
Vendor Marketing

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