High demand and a resilient market in May.
Over May’s 5 weekends the Real Estate Institute of Victoria (REIV) recorded more than 602 auctions. 247 properties were sold at auction, with 114 passed in. 41 on a vendor bid. 150 properites were sold before auction. The clearance rate over May’s last two weekends averaged 76%.
Public auction numbers increased to 20
Demand was high through May with agents reporting strong buyer competition for private sales and also at auctions, with high numbers of registered and active bidders. Confidence is firming again with public auctions and open-for-inspections now increased to a 20 person limit (plus agents and owners).
Vendors have little competition
Reported auction numbers ramped up consistently over the month from 98 on the first weekend to 163 on the final weekend – nearly doubling. We started this year with limited supply, which was reduced again in March and April by Covid. But transaction activity is rising again and vendors enjoy little competition from other sellers. Any home for sale is primed to get a lot of attention.
Government wage-subsidy and stimulus, plus mortgage holidays from the banks, have bolstered the economy and helped keep house values solid. Property market analysts CoreLogic report an easing of national home values by -0.4% in May, and -0.6% across the middle of the Melbourne market. However agents at the Melbourne coal face report little change in values.
The Melbourne prestige market has powered on with several big sales over the last couple of months, including an Albert Park home at 60 St. Vincents Place North selling for more than $9 million (Domain).
Some rental values have been dampened, largely by employment of younger workers, who have moved home with the folks again. And the Airbnb tourist market has evaporated.
Students are going back to school. And as long as there aren’t any significant outbreaks, Victorian restaurants and cafes will increase patron numbers on June 22. A big step towards normality!
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