Melbourne Property News Monthly Wrap – November 2023

November buyers get the jump before auction day

Over November’s first two weekends the Real Estate Industry of Victoria (REIV) recorded more than 1,093 auctions. 706 properties sold, 518 at auction, with 295 passed in. 188 properties were sold before auction with 0 properties selling after auction. The clearance rate averaged 70.50%, just down on October’s 72.75%.

The market paused for a moment for the Melbourne Cup long weekend, with auction numbers down, but bounced back in full Spring mode for the second weekend. So far in November nearly 1 in 5 sales (18.5%) were negotiated before the auction date. This is good strategic buying, if you know your values and can get the offer over the line.

Rates are up because interstate home values went up

There was a 0.25% rise in the cash rate on November 7 bringing it to 4.35%. The Reserve Bank says inflation has passed its peak, but is now trending too high again. Contributing to inflation is the jump in home values this year in just about every Australian capital city except Melbourne, which has created a ‘wealth effect’. Those lucky interstate homeowners figure their equity has grown so well they can ramp up their retail spending again. Melbourne is in a holding pattern right now but value growth will commence again at some point. It always does. This is a good reason to buy now!

How will the 0.25% rate rise effect me?

The latest rise will add another $80 per month to an average $500K loan. It also reduces borrowing capacity. Looking ahead home prices are not likely to drop though because of the ongoing shortage of supply – mostly because immigration is still barrelling on with a log jam of buyers who may be renting now but planning to buy when they get their ducks in a row.

Analysts claim some fringe suburbs set for remarkable value growth

The developer (and investment analysts) Custodian, is predicting home values have the potential to double over the next eight years in many outlying Melbourne suburbs. They claim places like Clyde North in the South-east, and Kalkallo and Mickleham in the North will see big gains as land availability continues to dry up and local infrastructure is established as planned. They may turn out to be right. Eight years can indeed deliver that kind of value growth, in the right hotspot.

Buyer Marketing gets the best possible deal for you

When you buy, you must buy great quality. And there is always stiff competition for that kind of property. You keep abreast of the field by negotiating off-market, or buying at auction with the right strategies. With Buyer Marketing on your side you’ll get this right. We will help you secure the perfect property at the most advantageous buying price. Call Buyer Marketing today on 1300 835 835!

Peter Fox
Principal Advisor &
Licensed Estate Agent
Buyer Marketing