Auction numbers are on the rise as stock levels increase across Victoria. Melbourne recorded a strong auction clearance rate over the weekend of 83% on 290 auctions which is the most amount of auctions held over a weekend in months. In addition, there were 112 private sales.
The property market is continuing to remain resilient and vendors are mostly being realistic with their price expectations. Agents are also encouraging vendors to sell if a reasonable offer has been made on their property. The number of transactions is significantly down on last year but that is to be expected based on less buyers and less sellers in the market.
After speaking to many prospective buyers, there seems to be a common sentiment of many waiting until the new year to purchase. This is very similar to the sentiment we experienced prior to the 2019 Federal Election which resulted in many buyers sitting on their hands. In this situation, once Liberal were voted in, many buyers entered the property market at the same time which resulted in property prices rising and many buyers not taking advantage of the eased buying conditions. We could see the same happen next year.
Next month, the RBA is tipped to decrease interest rates from 0.25% to 0.1% and if the banks pass this cut onto their customers, this will make borrowing money even cheaper than ever before.
Whilst we are not currently experiencing any property price drops as such, vendors who have their properties on their market are generally motivated to sell, reserve prices are mostly in line with what the property is worth and there is less buyer competition on most properties. These conditions are likely to continue for the remainder of this year but as restrictions begin to ease and confidence grows, more buyers might decide it is time to buy.
Have a great week everyone.
Kim Easterbrook
