Market strides on through second wave.
Over July’s 4 weekends the Real Estate Institute of Victoria (REIV) recorded more than 1,141 auctions. 470 properties were sold at auction, with 201 passed in. 73 on a vendor bid. 277 properites were sold before auction. The clearance rate averaged 78.5%, sharply up on June’s 65.5%.
Melbourne’s second Covid19 wave across July brought a swift return to online auctions and added to the trend to private treaty sales. Saying present conditions are ‘unique’ is an understatement, with a patchwork market of price rises in some areas and falls in others, but high buyer demand on all fronts.
Vendors who sailed on with online auctions on July’s last weekend had strong results – the 77.5% clearance rate matching similar high figures of Spring 2019. Demand is particularly strong from Family Buyers and First Home Buyers. They’re lining up, but there’s limited stock.
Two speed market emerging
Looking broadly a two-speed property market is emerging. Expensive homes in high priced zones are more subject to downward pressure, but more affordable areas are actually showing rising values.
The latest Domain House Price Report cites inner city areas like CBD, South Yarra and Fitzroy dropped 3.9% in value in the June Quarter. The Inner-East region spanning Kew to Doncaster, eased 3.8%. But in Melbourne’s West values rose by 2.5%. The North West rose by 3.1%. And the Mornington Peninsula was up 2.8%.
Generous handouts add confidence
The Government’s decision to continue JobKeeper payments until late March 2021 has eased some worries. The mortgage holiday offered by the banks until the end of September was taken up by 485,000 Australians and is providing relief also. Initially, home owners’ biggest worry was about job loss. But many businesses have adapted to employees working from home and a sense of job security in those sectors is returning.
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