Buyers keen as 2019 gets into gear.
Over February’s first two weekends more than 522 auctions were recorded by the Real Estate Institute of Victoria (REIV). 234 homes were sold at auction and 212 were passed in, 93 of those by vendor bid. So far this February the clearance rate has averaged 55.5%, up on December’s 48%.
A build up in buyer demand over Melbourne’s great Summer break brought a boost in clearance rates as the auction market moves into gear in 2019. Agents are reporting that after a downcast end to 2018, competitive bidders are out again on sale days, snapping up homes while conditions are favourable.
There are plenty of predictions about where the market is headed. CoreLogic registers an 8.7% drop in the Melbourne home values since the “peak in December 2017”. Commonwealth Bank economists have just announced they now expect Melbourne prices to drop 13% from peak-to-trough. Sydney values have already dropped more, i.e. by 13.5% so far, with another -6% or so on the cards.
Supposedly the Melbourne market has a bit further to fall before the climb back starts. Finder.com.au is predicting a further 6.6% drop in Melbourne values during 2019. If this does happen, there average home value fall again by about $49,000.
Not surprisingly, sellers are biting the bullet and adjusting expectations down. We’re seeing more careful presentation also, with more perfect fronts and highly appealing gardens and backyards. Vendors are making changes that upgrade appeal for sale time.
Sellers are trying harder to get the buyers they want.
Principal Advisor &
Licensed Estate Agent
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