Market cooling, but still a buyer for every seller
Over May’s four weekends the Real Estate Institute of Victoria (REIV) recorded more than 3,288 auctions. 2,144 properties sold. 1,542 at auction, with 889 passed in. 597 properties were sold before auction & 5 properties were sold after auction. The clearance rate was 70.75%, down on April’s 76.25%.
Melbourne’s housing market is continuing to cool, under pressure from rising interest rates and inflation. Analysts describe this as returning to more ‘normal’ conditions.
Evenly matched market ahead
With more stock listed now the market is becoming more balanced. Instead of homes being snapped up, we are seeing properties take about 30 days on the market to sell, which is deemed normal. Auctions are seeing plenty of pass-ins, but sell usually by nightfall, or within a few days. So negotiating is paramount now.
This is one of Vendor Marketing’s main skills and why it’s so good to have us in your corner to get your maximum possible sale price! Every perfectly presented and realistically priced home will still find a buyer, but likely with more haggling behind the scenes.
How the Albanese Govt will help home sellers
The election was always going to be a boost for buyers at the more affordable end of the market, no matter who won. Labor’s ‘Help to Buy’ Scheme has the government stumping up to 30% of the cost of existing homes (or 40% of the cost of a new one).
It’s a shared equity scheme for buyers who have at least a 2% deposit. Everyone who starts without a home is eligible, as long as they make less than $90,000 a year, or $120K for a couple.
It’s not free money, but it’s freed-up loan money! The next best thing for a borrower. The Government will be their new mortgage partner.
This will help homes sell in the more affordable end of the market, but has little relevence to trends in the more expensive end. The big banks (Westpac, ANZ, CBA) are forecasting a general easing of about 2 or 3% in values this year and a sharper 8 to 10% in 2023. Only NAB is still banking on homes rising by 2% this year.
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