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Record prices achieved in 2 Melbourne suburbs but overall there are signs the property market is stabilising

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Hi ,

There were 933 auctions over the weekend achieving a clearance rate of 76% which is slightly down on the same weekend last year.  508 sold at auction, 199 sold before auction, and 226 passed in.

The amount of properties on the market has now returned to healthy levels with reports that stock levels are tracking 5.5% higher than a year ago and 4.7 percent above the previous five-year average (according to CoreLogic).  These levels are contributing to the stabilisation of the property market where we are seeing the clearance rates consistently in the mid to high 70s.  This also reflects what we are seeing on the ground, where there are less bidders per property at auction, albeit good properties are still selling under strong competition.

The rental market also appears to be showing signs of recovery with the vacancy rate halving from this time last year.  Domain has reported that vacancy rates in February dropped from 4.4 percent down to 2.1 percent.  It is predicted that will continue to tighten with immigration from overseas putting further pressure on this market.  This is welcome reprieve for landlords with many impacted by the number of tenants in hardship during lockdowns.  Landlords are also now dealing with ensuring their properties are compliant with the new Residential Tenancies Act which has put some strict compliance rules in place which must be adhered to by March 2023.

A suburb record price was achieved in West Footscray on the weekend with a large renovated five bedroom, three bathroom home selling under the hammer. 39 Palmerston Street, West Footscray achieved a price of $1,930,000 but only after passing in and was negotiated immediately after the auction.  Family homes are still selling strong many buyers are looking for extra space after the lockdowns.

On the other side of town, another suburb record was achieved at 9 Colin Street, Bentleigh East with a newly constructed, 4 bedroom, 4 bathroom home, not in the McKinnon High School zone was sold under the hammer.  The property was quoted for $2,650,000 – $2,850,000 prior to auction but sold under the hammer for a huge $3,220,000.

Have a great week.

Kim Easterbrook

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