Melbourne Property News Monthly Wrap – May 2018

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Melbourne Property News - Buyer Marketing

Clearance rates drop, but Melbourne values hold.

In May’s first 2 weekends more than 1,832 auctions were recorded by the Real Estate Institute of Victoria (REIV). 895 homes were sold at auction. 611 homes were passed in, 304 of those on a vendor bid. The clearance rate so far in May has averaged 64.5%, markedly down on April’s average of 67%.

Clearance rates are continuing their downward slide in May. Vendors are no longer in the driving seat and have to take a more cautious approach to sale price expectations.

New data from CoreLogic shows the clear correlation between the restrictions placed on property investors over the last couple of years and the current cooling market. And the faltering Melbourne home value growth in 2018.

The $31.9 billion in Australian housing finance commitments during March were spilt between $21 billion to owner-occupiers and $10.9 billion to investors.

Mortgage lending has fallen month over month for both investors and owners, but is much sharper for investors. In the latest available data, (CoreLogic), finance commitments for investors were down -9.0% over March, the lowest since January 2016.

Keeping our own eye on the market over the last 3 weeks, Buyer Marketing has attended 8 auctions in Bayside. Of these, two properties in St. Kilda sold under the hammer for $2,090,000 (128 Argyle St) and $865,000 (103/65 Wellington St). At the Elwood auctions, one apartment sold for $831,000 (1/7 Dickens St) and one passed in $1,030,000 (14/9-11 Milton St) Brighton buyers held back more – out of 4 auctions attended by Buyer Marketing 3 passed in and one sold for $4,210,000 (11 Wolseley Grv).

Buyer Marketing also attended 4 auctions in Richmond so far in May, where 3 homes sold and one passed in. A notable sale was a luxury townhouse in a cul de sac at 1/1 Princes St attracting 3 bidders and selling for $2.5M, a few hundred thousand over it’s indicative selling price.

Peter Fox
Principal Advisor &
Licensed Estate Agent
Buyer Marketing

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