July slowdown an opportunity for buyers
Over July’s first three weekends the Real Estate Industry of Victoria (REIV) recorded more than 1,147 auctions. 737 properties sold, 568 at auction, with 410 passed in. 169 properties were sold before auction & 0 properties were sold after auction. The clearance rate averaged 65%, easing down on June’s 68%.
A series of rapid hikes in interest rates has brought a market slowdown to many parts of Melbourne. For buyers the easing home values are a great opportunity!
How long will the downturn last?
Most downturns last about 18 months, which means we’re already halfway through this one. What remains the priority for buyers though is choosing very well, buying very well, and making sure it’s an asset that will grow very well when the cycle turns back to value growth, which will be based on the home’s quality, location and appeal. With Buyer Marketing on your side you’ll have the expert advice to get it right.
It’s still about the asset, not just the market
In other words keep your focus on quality when you buy because that will deliver the most rewards when the market returns to value growth. Buyers who holding off and waiting for a ‘bottom of the market’ only find vendors are unwilling to sell in that kind of environment and good homes are even harder to find.
Building costs inflating 10% annually
Home prices may be easing but supply chain issues and inflation are causing big spikes in construction costs – up 10% annually. Building and renovating is more expensive than ever which can only be passed on as rising home prices.
Melbourne running out of rental properties
With more people returning to work in the inner city there’s a rental crisis developing with a property shortage and rents rising. All this while 10% of investment properties in Melbourne are supposedly untenanted. Many of these would be overseas buyers or local investors who prefer an empty property to having to manage renters.
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