More buyers take the plunge in June as the downturn starts to ease.
Over June’s first 3 weekends more than 1,338 auctions were recorded by the Real Estate Institute of Victoria (REIV). 660 homes were sold at auction with 399 passed in, 188 of those on a vendor bid. In the first half of June the clearance rate has averaged 65%, moving sharply up on May’s 62.5% and April’s 56.5%.
As we head into winter clearance rates are up again, despite the quiet Queen’s Birthday long weekend with approx 179 reported auctions.
Buyer Marketing has just achieved another great outcome – our client had been researching the property market for six months with no success but was hoping to find an investment apartment in the northern suburbs of Melbourne between 800 to 850K. We found a large 3 Bed, 2 Bath, 2 Car, Top floor apartment at 18/2 Saltwater Place, Footscray with city and waterfront views over the Maribyrnong River. The selling agent was hopeful of getting over $800,000. Buyer Marketing’s negotiating skills secured the property for $760,000 – a great result, and a very happy client.
So what is the market like for buyers right now and where is it headed?
Firstly and most importantly, the new ANZ-CoreLogic Housing Affordability report has just confirmed that Australia’s average housing affordability is now the best it has been since 2016. Which is good news for buyers.
The election result marked a bit of a turning point with increased market activity being quickly reported. According to Realestate.com.au chief economist Nerida Conisbee “On our site, there was a big jump in activity in Melbourne and Sydney in the week after the election.”
But more buyer activity wont cause prices to jump up. It’s more likely to add to a creep up in prices. This transitional market is likely to last for several more months before any real recovery starts. According to CoreLogic’s Head of Research for Australia, Cameron Kusher “We predict the price falls will settle later this year, followed by modest price growth starting from 2020.”
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