Spring market buzzing in October.
Over October’s 4 weekends more than 3,405 auctions were reported to the Real Estate Institute of Victoria (REIV). There were approximately 1,921 sales at auction. 703 properties were passed in with 295 of those on a vendor bid. The clearance rate averaged 75.25%, down slightly on September’s 77% and August’s 76%.
October was alive with Spring energy, including a surge in auctions (1,067) on the last weekend. The clearance rate was a vast improvement on October last year which was just 53%.
Some auctions had large numbers of bidders in October. A Carnegie agent reported having 13. This can take hopeful home buyers by surprise.
Overall it’s a positive outlook with a value growth trend under way. Melbourne house prices have already recovered more than half of the losses of the downturn, according to the latest Domain House Price Report. The September Quarter brought a 4.1% lift in values, bringing the Melbourne median up to $855,428. When the market hit bottom in March this year, $94,391 had been cut from the 2017 peak, taking the median down to $809,468.
But no analysts predicted such a speedy rebound. So far, it’s the fastest recovery on record.
Breaking it down, Melbourne’s outer east (Vermont, Wantirna and Rowville) had the biggest rise – by 6.3%. Inner south values went up 5.6%, and the inner east (Surrey Hills, Balwyn, Hawthorn) was up 5.5%.
As we have mentioned before, investors are back and very active. In September, Melbourne investor participation accounted for 26% of Victorian mortgage demand. In Sydney it was 32% – one in every three homes!
More information has just been released about the Government’s new first home buyers assistance scheme. It starts in January on a first in, first served basis, with a cap of 10,000 homes. These buyers will need only 5% deposit on homes valued up to $600,000 if the home is in Melbourne or Geelong. Elsewhere in Victoria it applies to homes up to a value of $375,000. It’s a great opportunity.
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