The Melbourne auction clearance rate was in the 80%’s for the second week in a row. Of the 420 auctions reported to the REIV (previous weekend was 375 auctions), 271 sold at auction and 84 sold before auction. There were an additional 295 private sales. The overall transaction numbers are expectantly down from last year but these numbers are a positive sign that the property market is holding up well. Prices appear to be remaining stable and the Melbourne market is not being flooded with distressed sales.
From next Monday, stock levels in Regional Victoria are predicted to dramatically increase as the ‘ring of steel’ between Metro Melbourne and Regional Victoria is due to be lifted. This will allow buyers from Melbourne to now inspect properties in person and the property market in Regional Victoria is tipped to be very active for the remainder of the year. With the increase in demand, it is predicted that some suburbs of Geelong may enter the $1m median price club within the next six to twelve months.
The Reserve Bank is meeting tomorrow and it is likely that the official cash rate will decrease from 0.25% to 0.1%. It is hoped that the banks will pass this on in full to help partly kick start the economy with increased consumer spending.
With low Covid-19 case numbers, a potential interest rate cut, reopening of Victoria and now the news of a vaccine rollout next year, there are a lot of reasons why buyers may not hold off too much longer to buy property.
Victoria and in particular Melbourne have done it tough over the past few months. The hard work is now paying off and it is great to see some positivity out in the community.
Have a wonderful week.