September adds 1.8% value growth.
Over September’s 3 weekends (no official data for the last Grand Final weekend) more than 2,312 auctions were reported to the Real Estate Institute of Victoria (REIV). There were approximately 1,343 sales at auction. 458 properties were passed in with 191 of those on a vendor bid. The clearance rate averaged 77%, up on August’s 76%.
Spring is delivering the usual burst of energy into the market and sellers are in the box seat. Christmas is a target date.
Buyers have to make the move in Spring, so they can get things settled in the new home by the end of the year and enjoy the summer break with the task completed.
This Spring is also bringing stronger than expected value growth. Dwelling prices in Melbourne lifted 1.8% in September alone (CoreLogic). This means values in Melbourne and Sydney have gained 3.5% in the last 3 months. A way stronger performance than most forecasters were predicting.
Clearance rates keep climbing too. Fear of missing out is also a factor right now, adding to competition amongst buyers.
The Reserve Bank has just (October 1) cut the interest rate from 1% to 0.75%, to support employment and income growth. A side effect of this will be a boost for home buyers and property investors.
Melbourne house prices are seemingly headed back to where they were in 2017 a bit sooner than expected. Given no global or local economic setback comes along.
For younger people, Melbourne’s housing affordability issue has been on hold only, relieved for a while by the induced property slump in 2018. Government initiatives for first home buyers will be the key helping hand as we go forward.
Because the market definitely appears to be getting its steam up again.
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