The REIV auction clearance rate achieved a result in the 80’s again with 382 auctions reported. 231 sold at auction, 85 before auction and an additional 206 private sales. The clearance rate for houses was 84% and units 80%.
In the first 12 days of November, CoreLogic’s data shows that Melbourne property prices were bouncing back and outperforming all other major capital cities around the country. This data is supported by four weeks of strong auction clearance rates.
Over the past six months, I have been asked almost on a daily basis about distressed sales. The second lockdown financially hit some people very hard and no doubt some people will lose their businesses and potentially their homes. However, the government have helped support many businesses through JobKeeper and other grants, and the banks allowed mortgage holidays to try and help keep people afloat. On the flip side, there have been many people who haven’t lost their job, in fact, have been saving a lot more money than what they normally would have. This has allowed some buyers to have increased budgets due to larger deposits.
The banks have extended mortgage holidays for another four months, now ending March 2021. This has given homeowners plenty of time to sell their home if they anticipate they financially need to. Interestingly, 50% of all mortgages on holidays have now had their repayments resume, not needing to make use of the extended holiday.
Many selling agents are reporting they are rarely seeing a distressed sale and even when the odd one does come onto the market, the buyer demand is strong enough to achieve a sale at market value.
There have been many reports this year that Melbourne property prices will drop and thus far, the market has remained very resilient. If everything remains as it is now, we will enter into a very active late Spring and busy start to next year.
Have a great week.