Melbourne Property News Monthly Wrap – March 2024

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Melbourne Property News - Buyer Marketing

Interest rates stay at 4.35%. Lower range homes gaining value fastest so far in 2024

Over March’s first three weekends the Real Estate Industry of Victoria (REIV) recorded more than 2,352 auctions. 1,471 properties sold, 1,143 at auction, with 440 passed in. 328 properties were sold before auction with 0 properties selling after auction. The clearance rate averaged 78.00%, virtually on par with February’s 78.25%.

RBA holds rates at 4.35%

It was good news for home buyers this week after the Reserve Bank kept interest rates on hold at 4.35% for the third meeting in a row. This guarantees stability for the immediate buying period, with the likelihood rates will drop marginally later this year.

What’s happening with house values?

Usually the more expensive top end homes lead property cycles, gaining value sharply in an upswing or losing sharply in downturns. Although the upper end went up strongly over a lot of 2023, property analysts CoreLogic (in their March Housing Chart Pack) claim it’s the wider middle and lower quartiles of the market that are showing the most gains so far in 2024.

Survey puts buyer confidence high

The industry keeps tabs on exactly what buyers are thinking from quarter to quarter and according to realestate.com.au’s latest Residential Audience Pulse Survey, many buyers are in a positive state of mind right now with 35% of all survey respondents believing it is currently a good time to buy, which is up 9% on the previous quarter.

The main reasons people are buying this year

Firstly, there are lot of people looking. The latest data from property analysts PropTrack claims 23% of all Australian consumers aged 18 and over are interested in buying a home and are pro-actively looking. That’s nearly 1 in 4. Lifestyle changes like wanting to live in a different/better area ranks as the highest motivator, with 32% of buyers. Other motivators include making financial gains (18%) – this includes the investor cohort, downsizing (13%), retirement (12%), and upsizing (12%).

Do you have to compete with foreign investors/buyers?

Melbourne has way more foreign buyers/investors than other capital cities. According to the most recent available data (Register of Foreign Owned Residential Real Estate, 2022), Victoria had 1,703 purchases over the 2022 financial year. This is nearly twice more than the next highest state, Queensland, which had 956 purchases. New South Wales was a distant third with 664. The most searched location in Australia by offshore investors on realestate.com.au was the Melbourne CBD where they are buying apartments/units. If you’re buying there you certainly will have some stiff competition!

Buying a property is usually very competitive, plus there are potholes which can result in paying too much. Buyer Marketing’s deep experience and strategies for every stage of the process will give you the advantage you need. Find that perfect property and secure it at a price that’s most advantageous to you, the buyer!

Peter Fox
Principal Advisor &
Licensed Estate Agent
Buyer Marketing

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