There were 740 auctions reported to the REIV over the weekend resulting in a clearance rate of 73%. 413 properties sold at auction, 124 before auction, 1 sold after auction and there were an additional 236 private sales. The same weekend last year there were 942 auctions resulting in a clearance rate of 68%.
CoreLogic released their national monthly Home Value Index last week which showed nationally, property prices has risen 0.6% which is the smallest monthly gain since February 2023 with Melbourne being down 0.1%. This brings the quarterly growth to 0.6% across Melbourne which supports a balanced and stable market. CoreLogic Research Director Tim Lawless makes a good point in regards to how historical property cycles might change in the future. The higher end of the market usually leads the charge in a property cycle but with interest rates rising, and borrowing capacities reducing, it may actually be the middle ring of the market which is the one to watch when looking at property cycles. This segment is where the strongest rate of growth is currently sitting.
The good news is that it is looking more unlikely that the RBA will increase interest rates tomorrow with the new inflation rates being below 5% for the first time in 20 months. This still doesn’t mean there won’t be another rate rise early next year however for the time being, this news can give buyers some kind of confidence that we might be getting close to the peak.
2023 has been a very interesting year for the Melbourne property market, property prices still increased whilst interest rates were rising at an unexpected rate. There have no doubt been some casualties who have had to sell their properties due to unaffordability. But it also shows the resilience the property market has and population growth is strongly contributing to the strong demand.
This is the final property market wrap for the year. Myself and the team wish you all a very Happy and Safe Holiday season and looking forward to updating you all on the property market in 2024.
Have a great week.
Gold Coast Property Market Update
The Gold Coast property market is a very different market to Victoria and in fact, any other state in the country. Melbourne is the auction capital of the country where in comparison, the amount of properties that go to auction in Queensland is far less.
The reason for this is in Queensland, by law, an estate agent is not allowed to quote any price for the property if it is going to auction. This leaves buyers scratching their heads and unsure as to how much they should pay or if the property is likely to be any where near their budget. This is particularly hard for buyers from interstate and overseas. The auctions are not fast and furious as they are in Melbourne & Sydney, often taking well over half an hour up to an hour as the auctioneer often pauses the auction to privately negotiate with a buyer. If he receives a higher bid from a buyer, he will reopen the bidding.
Most agents prefer to conduct private sales but don’t put a price on the advertisement which also leaves the buyer frustrated as to what they should pay. Another point to remember is that there is not an “and/or nominee” option in Queensland, it is imperative that all buyers details are correct at the time of signing the contract as they cannot be changed once the contract is signed by all parties.
A very different market to Victoria and just reiterates why it is important to get professional help when trying to buy a property.
Jenni Wright – Senior Buyer’s Agent (Gold Coast)
Geelong Property Market Update
The activity in the Geelong property market has picked up and there has been an increase in available stock over the last few weeks as some vendors are keen to sell before Christmas. Good quality properties that require minimal work have attracted multiple interested parties during negotiations from both first home buyers and investors.
Geelong has been recognised as one of the nation’s top future property hotspots. This is attributed to factors such as strong population growth, economic diversification, and the success of the Armstrong Creek urban growth corridor as a job creator. There have also been significant investments in the region, including defence manufacturing contracts, local infrastructure improvements, and the construction of a $294 million Geelong Convention Centre. These factors contribute to the desirability of buying property in Geelong.
The national valuation firm Herron Todd White has indicated they believe Geelong as reaching the bottom of the market on its national property clock, indicating a potentially favourable time for property buyers in the region.
Vicky Whittaker – Senior Buyer’s Agent (Geelong and Regional Victoria)