Melbourne Property News Monthly Wrap – February 2024

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Melbourne Property News - Buyer Marketing

Clearance rates run hot in February buyers’ market

Over February’s first two weekends the Real Estate Institute of Victoria (REIV) recorded more than 1,466 auctions. 1,177 properties sold, 879 at auction, with 289 passed in. 273 properties were sold before auction with 25 properties selling after auction. The clearance rate averaged 78.50%, way up on December’s 73.50%.

Halfway through February we’ve seen a sharp jump in the clearance rate compared to how it was easing back in last year’s December quarter. Demand has picked up and buyers are competitive and more determined to secure a property.

What buyers need to know about the market right now

Although most other capital cities have seen substantial home-value growth over the last 3 years much of Melbourne has been in the non-growth, or minimal value growth part of the ‘property-clock’ cycle.

At Buyer Marketing we keep pointing this out because it’s unusual for Melbourne to be so clearly out of kilter with other east coast capitals. Fact is, buying conditions in Melbourne right now are terrific compared to the rest of the country.

It’s a great time to buy

CoreLogic data shows dwelling values in Melbourne were actually down 0.1% over January. Melbourne home values have increased only 15% (PropTrack) since Covid arrived and upset the applecart early in 2020. But over the same period Sydney home values have risen over 30%, Brisbane’s rose by around 56%, Adelaide is up nearly 60% and Perth is up 46%.

Melbourne price rises have missed the bus. Which is an ideal time for buyers to get on board!

It’s a unique opportunity to buy before the next price hike.

Rates stay on hold

In February’s first week the RBA kept the cash interest rate on hold at 4.35%. The RBA is always conservative and warned that rates could even increase again, depending on conditions. But Australia’s financial markets are more bullish and are betting on the first rate cut happening around August. If this does happen it will increase the amounts people can borrow, put more buyers in the market, producing conditions where home values rise.

Why rents have jumped so much in Melbourne

According to property analysts CoreLogic, Melbourne rents shot up 3.8% in the December quarter and 18.3% over the last year. ‘Skyrocketing’ is a word that fits.

A lessor factor here is property investors (landlords) are being driven out of Melbourne by State Government taxes and policy and have been selling up, reducing the number of homes available for rent.

But the predominant factor is the 200,000 migrants who arrived in Melbourne in 2023, the majority of who are renters for the first few years. These annual cohorts of new arrivals get straight to work building up their mortgage deposits. After getting established they buy entry level properties, to keep for 10 years or so before many trade up again. Over the next few years (granted interest rates ease down) this market churn will contribute to an upswing in home values.

Peter Fox
Principal Advisor &
Licensed Estate Agent
Buyer Marketing

Google Reviews

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Gail Lobo profile picture
Gail Lobo
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Peter's knowledge and expertise were invaluable when purchasing my first home. He guided me through every step and kept me informed regularly, which made the process easier and less stressful. I felt supported and in good hands throughout. Everything fell into place within a few weeks, quicker than expected! I would highly recommend Peter and his services.
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Charlotte St John
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Peter Fox is an outstanding buyer’s advocate. I am so glad that I hired him. It was incredibly helpful to have someone so experienced in real estate navigate the ins and outs of buying a home on my behalf. He achieved the result I was looking for in record speed, and took the stress out of everything. Thank you Peter.
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Colby Hart
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Peter was a fantastic buyers advocate - identified and negotiated our dream home for us extremely quickly. Couldn't recommend higher.
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Beatrix Neville profile picture
Beatrix Neville
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I had an excellent experience working with Peter in purchasing my first home. Peter has a calm demeanour and is a clear communicator - never once did I feel stressed, pressured or uncertain of where I was in the journey or what the next steps would be. Peter understood me and my brief, selected quality properties to inspect and took me through off-market properties to compare. Within 3 weeks of contracting Peter we secured the perfect place. I am absolutely thrilled with my purchase, and believe I would have missed out on the property without Peter's rapport and expertise in communicating with Real Estate, and then guidance once the negotiation process started. Peter made the process of finding a property so fun and exciting that I was almost sad when it was over! Thanks Peter!
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Jean-Pierre Eid
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We engaged Peter Fox for bidding and negotiating, hands down one of the best decisions we ever made. He was clear and comforting ahead of auction and on the day witnessing Peter go to work was awe inspiring. Having done his due diligence beforehand, he was quick to assess a sizable field of interested parties and surgically execute a winning strategy securing for us our dream home. All that aside Peter was empathetic and understood our worries and motivations while also demonstrating strong discipline and an ethical approach throughout. Thank you Peter Fox
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Jessica Fagioli
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Peter is nothing short of a real estate king. I engaged Peter because I was looking at buying a specific house in a very competitive area, and which was being sold under a complex set of circumstances. Before even formally engaging him, Peter had gone to see the house in question, had spoken to the real estate agent, and had a good idea of what we were working with. From that moment on, I knew I was in safe hands. Peter was always available to alleviate any concerns and answer any questions, and when he wasn’t in a position to know the answers, he knew exactly how to get them in a prompt manner. Peter established a strong rapport with both the vendor’s solicitor (which ensured my lawyers and I were comfortable with the state of affairs before auction day) and the selling agent (which was critical to my ultimate success at auction). I cannot even begin to describe Peter’s mastery on auction day: there is no way I would’ve succeeded had he not been there. I cannot recommend Peter highly enough. Infinite thanks to you, Peter!
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patty goodman
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I purchased an investment property through Peter and he made the process so easy and stress free. I saved so much time being able to work while he inspected multiple property’s and negotiated a good deal for the right one. Highly recommend this bloke!
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Peter Mallen
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Peter Fox from Buyer Marketing helped us buy a property in Vermont South recently. We have been looking to downsize for some time and, honestly, are fairly fussy with our criteria. So when a house came along which ticked many of the boxes for us, we enlisted Peter's help to negotiate with the agent and to get the deal across the line. Peter was friendly, approachable and professional throughout. His knowledge and experience of the real estate market and the buying side in particular meant that we could leave the conversations and timing of offers to Peter. We were able to secure the property we wanted at a price that met our budget and met our criteria. So we are very grateful for Peter's advice, assistance and good communication throughout the process.
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Peter Villinger
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With Buyer Marketing’s Peter Fox I was in good hands from the beginning. An initial meeting with Peter set me on the path to a successful purchase of a property. This was an informal chat whereby he was able to understand precisely what my requirements were.From there the process was clear and efficient, Peter explaining not only what he would do but also how and why those were his strategies.Regular updates and the knowledge that he was up for a chat anytime was most reassuring. Peter V
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James Ireland profile picture
James Ireland
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Peter provided us with deep knowledge of the local areas, the real estate market and contacts within the industry that allowed us to quickly purchase a property that suited us perfectly. He gave us calm and thoughtful recommendations and was there for us at every step. He gave us insights we would not have otherwise known, and made the whole process simple. He conducted all the negotiations on our behalf and we came away with the perfect property at the right price. Could not recommend his services higher.

Buyers Agent Melbourne

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