Melbourne’s auction clearance rate dropped for the second week in a row to 72%. This is the lowest clearance rate we have seen for quite some time. 381 properties sold at auction, 144 sold before, 3 sold after auction and there were an additional 115 private sales.
Whilst some vendor’s believe Spring can be the best time to sell, the increase in stock generally gives buyers more choice. The next 10 weeks leading into Christmas should bring some better buying opportunities for property buyers. Both vendors and selling agents are usually very keen to sell their properties before Christmas Day which is a deadline that can work in buyers favour.
A predicted interest rate rise may also temporarily add a little bit of uncertainty into the property market. History has shown us that with every interest rate rise, there is a week or two of increased uncertainty until buyers become accustomed to the new interest rate. We have all known another rise was highly likely before the New Year so this should not be shock to anyone.
The Melbourne Property Market does feel similar to the Spring season last year where the conditions eased and there were more buying opportunities. If history repeats itself though, the Christmas break will be a good reset for buyers who came out in force in February.
Have a great week!
Geelong Property Market Update
Stock levels for houses in the $700,000 to $1,000,000 are low and there is a continuation of a strong buyer pool for these homes with competition pushing prices beyond current market values.
KPMG chief economist Brendan Rynne has predicted that Geelong will have three new $1m by 2025 being Geelong, Geelong West and Highton. He believes the increase in demand will drive this as a result of increased migration, predicted interest rate cuts in 2025, lending conditions may ease, renters being pushed out of the rental market (due to increased rents and lack of supply) and demand from overseas investors.
Geelong is still seeing an increase in Melburnians moving to the area due to lower priced housing and flexible working arrangements being able to work from home a few days a week. This migration will likely to continue well into the future.
7 Janmar Court, Grovedale is a modern, three bedroom, two bathroom home that was recently listed for sale at $769,000 to $799,000. The property sold after one open for inspection and multiple buyers seeking to secure the home.
Another property that sold quickly was 7 Victoria Terrace, Belmont. The 3 bedroom 1 bathroom home on 558 sqm was quoted for $900,000 to $950,000 prior to auction and sold for $1,060,000.
Vicky Whittaker – Senior Buyer’s Agent (Geelong and Regional Victoria)