Property market far from falling off its perch

Property market far from falling off its perch

28 Jul 2015 By: Greg Hocking 0 Comment

Have you heard people saying Melbourne’s home market has passed its peak because of a tiny blip in auction clearances last week?

Call me an optimist but after 30+ years in real estate I am far from convinced that Victoria’s housing market is poised to fall in a heap because the weekly auction sales’ rate reduced by a couple of percent. It isn’t. And here’s why.

After months of hot bidding activity, the auction clearance rate dipped because the industry all-but ran out of A -grade stock listings. Melbourne’s auction clearance fell to (a still very plump) 74.9%; only 2.5% down on the previous week, according to CoreLogic RP Data. Still it was enough to ruffle a few Chicken Little commentator feathers.

This week we have seen the rate return to 76.5% and can report that well located and presented properties are selling – often within days of listing – often fetching record prices. Almost eight in every 10 homes have sold under the hammer this winter. Melbourne’s median house price rose 3.5% in the June quarter to reach $668,030, according to APM data. The sky is definitely not falling.

If you own a property with broad market appeal and are considering selling, we forecast the last month of winter will be a particularly favourable time to list because with spring just around the corner, savvy vendors can benefit from the fact Melbourne’s eastern suburbs home cupboard is almost bare.

Call us today to learn how you can capitalise on market conditions and sell your home for more.

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Greg Hocking

 

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