Surging March spikes under-quoting claims.
Over March’s first two weekends the Real Estate Institute of Victoria (REIV) recorded more than 1,268 auctions. 983 properties sold, 748 at auction, with 202 passed in. 228 properties were sold before auction & 7 properties were sold after auction. The clearance rate averaged 82.5%.
According to realestate.com.au 20% of Melbourne homes sold above their advertised prices over February, leading to some accusations that agents are underquoting. But properties selling at auction above price expectations is typical of a steeply rising market with plenty of bidders in competition. Some buyers can be caught out by this, which is why it’s a good idea to have Buyer Marketing in your corner providing a sharper picture of the property’s value and how much competitive interest there is.
Low rates will continue for years
The strong competition we see this March will continue through 2021 and into 2022 – according to the just released ‘REA Insights Property Outlook Report’. The Reserve Bank just added to this buyer confidence by saying it intends to keep rates low for the next three years, even if house prices keep rising steeply.
Will Government put the brakes on?
There is some talk the government might put the brakes on the market by limiting loans, with clampdowns on borrowers with small deposits or high levels of debt compared with their incomes. If you’re in this category it’s a good idea to move quickly while loan conditions are still favorable!
Home values will continue to grow
Finance remains ultra cheap and it’s possible to get a mortgage rate under 2%. No overseas holidays means people are also putting that saved money into property. The lockdown has also created a desire for extra home space. Put this all together and its no wonder there’s so much demand for good properties.
Principal Advisor &
Licensed Estate Agent
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