The REIV clearance rate again remained steady at 69%, even on a higher number of auctions which is demonstrating the property market is remaining stable. 410 properties sold at auction, 134 selling before auction and 244 passed in. There were an additional 151 private sales. Interestingly the numbers were much higher last year as we came out of the last lockdown with 1,204 auctions reported to the REIV and 90% of them selling.
The median house price in Melbourne fell 7.4 per cent in the September 22 quarter according to the REIV to $993,000. But the data is certainly showing some inconsistencies. Some suburbs are continuing to have price growth whereas others are declining. The median house price can also be skewed if there are less higher end properties selling which can also bring the median house prices down. Although on the ground, there is no doubt there has been some softening in prices (generally speaking) and many vendors are realising this and adjusting their price expectations in order to have their property sold. Units and apartments seem to be holding their prices a little more with a quarterly change of 2.8%. The data in Regional Victoria is suggesting that the median house price has dropped 2.8% to $611,000 and units/apartments down 2.3% to $425,000.
The rental market is one of constant discussion with some investors getting excited about rental prices increasing significantly as the media suggests. There is no doubt the amount of vacant properties available is tightening. As a company, we have never had such little supply available for lease. That being said, it hasn’t translated in huge rent increases yet in the Melbourne and Geelong rental markets. Properties are leasing out quicker but still are somewhat price sensitive. That being said, with the sudden tightening of supply, this absolutely could start translating into rent rises. It will be interesting to see what happens over the next three to six months.
There were still plenty of buyers out on the weekend and family homes are still proving to be a stronger segment of the market. 21 Parker Street, Ormond went to auction and is a well located, five bedroom, two bathroom, updated period home on 666 sqm. The property was quoted at $2,000,000 to $2,200,000 prior to auction and attracted six bidders with the property selling for $2,292,000 on a reserve of $2,170,000.
Have a great week.