Melbourne Property News Monthly Wrap – September 2024
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Surging September pauses for the grand final
Over September’s four weekends the Real Estate Institute of Victoria (REIV) recorded more than 2,146 auctions. 1,650 properties sold. 1,164 at auction, with 496 passed in. 485 properties were sold before auction & 1 property was sold after auction. The clearance rate averaged 78.00%, a touch down on August’s 79.80%. 810 homes were sold privately – about a third of total sales.
Auction numbers were high through September with 778 auctions on the weekend before the AFL Grand Final, but auctions dropped by 93% on the long weekend with only 53 reported.
RBA keeps cash rate steady
In September’s last week the RBA kept the cash rate unchanged at 4.35%, which will maintain stability in the property market through Spring. Their next review will be on the 5th November. Looking internationally the US dropped its cash rate by 50 basis points on Sept 18 – down to 4.75%. The UK’s cash rate was dropped in August – from 5.25% down to 5%. Even with cuts, both these countries’ rates are still higher than Australia’s.
What sellers need to know about the market right now
According to property analysts PropTrack the overview is Melbourne home values have increased 15.5% since March 2020. The increase was higher at one point but has dropped -4.66% from the peak. Values have eased back -1.46% over the last 6 months. Over August, values eased -0.18%. Melbourne values are really just marking time at present with a median house value of $925,762. Demand remains strong, which is good for vendors.
New listings are high
Listings are sitting above historic average levels over the past year. In July 2024 listings in Melbourne were the highest since November 2018 and were 24% above the prior 5-year average.
So many sellers are going ahead with their life-moves and taking their homes to market. It’s very competitive. Having Vendor Marketing by your side through the whole process is your best route to maximise your home sale price. Our experience makes all the difference!
Why have values raced ahead in other States but not Melbourne?
Take New South Wales for example. Melbourne median house prices are now approximately 41% cheaper than Sydney – a $600,000 difference. (This is a big driver in attracting immigration to Melbourne where immigrants can buy a home and save half a million). With Sydney it’s not the great harbour views that add the value. Not so many homes get to enjoy that aspect.
The main factor is Sydney’s land scarcity and low housing supply, versus size of population. This keeps prices rocketing. Melbourne has more space and builds more homes. You may have noticed all the spreading new suburbs? This immense sprawl keeps prices down. Of course, spiralling property values attract investors, adding impetus and sending Sydney values up further. And, Victoria’s new land tax rules has also had an impact on investors.
90% of investors in over half of the suburbs in Sydney are negatively geared (CoreLogic). So there’s quite a bubble there. With new rumours about the Albanese government planning to curtail negative gearing, there could be serious implications for that market, which could also see rents increase dramatically.
Craig Knudsen
Principal Advisor
Vendor Marketing
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