Spring market hungry, but homes in short supply.
Over the first three weekends of November more than 2,002 auctions were recorded by the Real Estate Institute of Victoria (REIV). 1,068 homes were sold at auction with 456 passed in, 178 on a vendor bid. In the first half of November the clearance rate has averaged 74%, slightly down on October’s 75.25%
Melbourne Cup weekend meant a quiet start to November, but we have a strong and stable market right now, with the clearance rate hovering around 75% for the past few months. Supply is notoriously low this Spring but starting to trend marginally higher, spurred on by improving seller confidence.
Values are trending higher – but surging is maybe a better description. CoreLogic reports that values shot 2.3% higher over October, which is the biggest month-onmonth gain Melbourne’s had since November 2009. This means Melbourne housing values have lifted by an extraordinary 6% since reaching the bottom of the trough in May this year.
Helping to boost this rise in values is the continued short supply of really good stock plus plenty of active bidders at auction. We can expect this momentum to continue.
Looking at economic trends, the latest Reserve Bank interest rate cuts were supposed to stimulate retail spending and boost the economy, but great numbers of Victorians have been using the cuts to repay more off their home loans instead. This was an unexpected result, but it’s logical. And sensible.
Notable sales so far this month have included the 5 ‘The Block’ renovations on Grey Street St Kilda on November 10. The top price was $3.62M for 38/B Grey St.reet ‘The Block’ renovations in 2018 and 2019 have delivered a breath of fresh air for St Kilda that’s almost as good as the breeze off Port Phillip Bay. You don’t have to cross the street to get safely past The Gatwick anymore.
Some of Melbourne’s wealthiest people believe the time is right to make a move, with big off-market deals. In South Melbourne 41-42 Howe Crescent was bought for a record $12.5M. And 43 Marne Street South Yarra was bought for $36M.
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