MELBOURNE’S MARKET COMES UP TRUMPS

MELBOURNE’S MARKET COMES UP TRUMPS

14 Nov 2016 By: Greg Hocking 0 Comment

As I write this week’s report I am still scratching my head.

How different the world looks just seven days after our last property market update. Donald Trump will be the 45th elected president of the US, historic in countless ways not least being the fact he is a billionaire businessman with no political experience who made his early money via real estate.

I doubt even many of his fiercest supporters thought he could really pull it off.  It was a shock

win, to say the least.

But here’s the thing.

When you look at our industry fundamentals, and even global currency and stock markets 72 hours on, not much has really changed despite predictions that it would.

Initial jitters on Wall Street and the ASX immediately after Trump’s victory have bounced back.

The Australian property market continued on its current trajectory of value growth, stability and more overall demand than supply.

According to CoreLogic, 77.5 per cent of all 2,843 auctions held across the nation this weekend resulted in sales, a rise of almost four per cent on last week when there were 2,517 auctions Australia-wide.

If we look at Melbourne alone, it is a similar story. Clearance rates rose to 77.2 per cent this week from 76.1 per cent a week ago, despite auction numbers rising more than 30 per cent to 1,313 from 927.

So clearly our sky didn’t fall.

The sun will keep rising even with unpredictable world events now dominating tearoom talk.

And once again, the property market proved it will always be as safe as houses.

 

If you would like an obligation-free appraisal of your property, call our team today.

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Greg Hocking

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