Outlook bright as property market dodges a bullet.
Over the 4 weekends of May more than 2.095 auctions were reported to the Real Estate Institute of Victoria (REIV). There were approximately 1,012 sales at auction. 680 properties were passed in, 320 on a vendor bid. The clearance rate averaged 62.5%, sharply up on April’s 56.5%.
Auction numbers and clearance rates both climbed in May. The combined effect of the election result, plus the banks’ plans for less stringent loan conditions, is likely to ease downward pressure on Melbourne’s property market, which is great news. Whether it’s enough to turn the whole thing around though remains to be seen.
One of the Government’s vote buying promises is to allow first home buyers to enter the market with just 5 per cent deposit. Add this to other grants and incentives and this cohort now has some of the best buying conditions possible.
In the broader market, a couple of choice sales at the end of May in the inner North brought surprisingly good results. 6 South Terrace Clifton Hill sold for $300,000 above reserve at $4.5M. A townhouse at 11 King William St, Fitzroy shot $300,000 past reserve to sell at $2.2M.
Local agents report that positive signs of buyer appetite and confidence are returning.
The Reserve Bank is making noises again about a possible cut in interest rates. May also brought a sudden rise in the stock market which may or may not hold. But both these
elements add further to consumer confidence.
With the uncertainty of the election over and more buyers emerging, Geoff White, head of Australian real estate at CoreLogic has made a clear call – he says it’s “onwards and upwards from here”.
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