Melbourne Property News Monthly Wrap – September 2023

September market shines for home sellers

Over September’s five weekends the Real Estate Institute of Victoria (REIV) recorded more than 3,270 auctions. 2,019 properties sold. 1,490 at auction, with 677 passed in. 528 properties were sold before auction & 1 property was sold after auction. The clearance rate averaged 74.75%, similar to August’s 74.5%.

The September auction market was vibrant on all weekends except the last when it slowed for the AFL Grand Final. Spring’s first month brought high clearance rates, recovering home values and unseasonably warm weather.

National home values grow faster than inflation

According to the latest PropTrack Home Price Index, National home values are speeding up again with values lifting for the eighth month in a row, growing 6.6% since January. Melbourne values however, hampered by a pandemic hangover, dropped value across 2022 after the impact of rising interest rates. But the good news is so far in 2023 values have crept back to a full recovery from that 2022 dip. Melbourne values rose 0.3% over September for example (CoreLogic) with a forecast of more positive growth ahead.

Melbourne homeowners’ determination to go onward and upward and improve their lifestyles with better homes is outweighing the impact of higher interest rates. Record levels of immigration are adding demand too.

Why units are in the spotlight

Units have always been an entry point for first home buyers and the affordability factor is getting apartments a lot of attention. Nationally there’s a comparatively low number of approved unit projects in the pipeline and a shortfall in supply is forecast. Given that, the Reserve Bank’s cash rate is looking like it will retreat in 2024 and the better borrowing/buying conditions that follow, could bring about a mini price boom in the apartment market.

Current pros and cons for unit investors

Some highly geared investors have had enough of inflating running costs (plus new State taxes) and are bailing out. On the other hand, Melbourne rents have jumped 11.3% over the last 12 months which means stronger yields are there for unit owners with more equity.

Get it absolutely right when you sell

Your home or investment property is usually the most valuable asset/s you will ever have and selling is not something you should do without very careful planning. There are ways to maximise your home sale price and with Vendor Marketing’s expertise you’re in the best position to get the optimum result. If you are moving within the market to sell, then buy your next home, you will also need to offset all the transaction costs. There’s stamp duty, finance, moving, and all the time you invest in the whole process. With Vendor Marketing you’ll get it right!

Craig Knudsen
Principal Advisor
Vendor Marketing

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