A strong clearance rate of 96% was achieved over the weekend with 565 online auctions conducted. The final result for the previous weekend was 869 auctions and a clearance rate of 93%. In comparison, the same weekend last year produced only 159 auctions and a clearance rate of 67%. It must be noted that these results do not take into account the properties that have been converted from auction to private sale nor the auctions that have been postponed until after lockdown. However, it does tell us is that almost every property that went to auction….sold. There were an additional 183 private sales and lockdown has certainly not impacted on the amount of property transactions too dramatically.
Melburnians’ are hoping for some good news that lockdown will end this week and we are expecting an extremely busy few weeks in the real estate market playing catch up. My company, once again has experienced strong new buyer enquiry over the past week and a half with investors making up a large percentage of this enquiry.
With currently no population growth in Melbourne, and even some long term residents moving to the country/sea, there is still a strong demand for buyers to invest their dollars into the Melbourne property market. We have seen how property prices have soared in Sydney to unaffordable levels and a large majority believe that Melbourne property prices will follow suit (and already are). Property prices have remained very resilient throughout the biggest test it has ever experienced (a pandemic). Population growth is expected to resume once the international boarders open due to immigration. Investors have also had particular interest in buying in Geelong and Ballarat. This is due to these locations being a lot more affordable than Melbourne and both towns also offering a great life for families with very good private and public schools.
Unfortunately, first home buyers are the casualty here with strong demand further pushing them out of the property market. There is no surprise that the banks are seeing a decline in first home buyer lending with Melbourne’s median house price now tipping over $1,000,000. This will likely result in more first home buyers opting to rent or looking at properties at a more affordable price point, eg. apartments or properties further out from the CBD.
Have a great week.