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.
Kim Easterbrook
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
It has been a great week for Victorians! Not only did Melbourne Storm, Geelong and Richmond book themselves a spot in this years Grand Final, cases of Covid-19 have dropped dramatically and we are now on the brink of defeating the second wave. Last night Daniel Andrews announced some easing of restrictions and more to come over the next two weeks. Interestingly, we had a run on enquiry from new buyers after the announcements yesterday. There is certainly a lot more positivity in the air.
Last week in metro Melbourne, there were 117 online auctions reported to the REIV with a clearance rate of 76%, in addition there were 152 private sales. We are still well down on the usual spring numbers but I am expecting this to increase considerably over the next few weeks. As part of Daniel Andrews announcements, auctions are now allowed on site with 10 registered people only in addition to the agency staff. We will see some online auctions now convert to onsite auctions.
In Regional Victoria, the property market is very active with days on market declining. Some of these properties are selling to Melbourne buyers purchasing sight unseen. This includes properties in the town centres of Geelong, Ballarat and Bendigo and acreage properties on the outskirts of these towns. Over the lockdown period, there has been a real shift in the mindset of some Melburnians that has resulted in wanting a sea or tree change or wanting a second residence in the country. This has caused an increase in demand for these areas.
Whilst this could be just a short term phase that could decline over time, there is certainly an increase in investors looking to purchase in these areas which will push higher demand long term. Whilst residents of metropolitan Melbourne cannot enter Regional Victoria for the purpose of a property inspection, there is still a window of opportunity here as many buyers will not buy sight unseen.
Have a great week everyone.
Kim Easterbrook
We are one week in to Metropolitan Melbourne now being allowed to conduct private inspections and there is no doubt the property market is active. There was a lot of confusion at the start of the week as to what was and wasn’t allowed but there now has been some clarity around that. In addition to private inspections, photographers, videographers and stylists are allowed access to the property which means newly listed properties will come onto the market, and building inspectors are allowed on site.
So you would think that it is now business as usual however I don’t believe the amount of private inspections that the selling agents are currently conducting is sustainable. I spoke to countless number of selling agents who had been standing at the one property all day, everyday, showing ‘qualified’ buyers through. Some agents having to conduct over 100 inspections for the week with their executive assistants helping to open properties and working Sunday to get all the prospective buyers through.
This does show though that there is buyer demand with many agents reporting the buyers coming through their properties are new to the market. Stock levels still remain low but we believe that will increase over the coming weeks as new properties come onto the market.
We had an extremely busy week at Elite with back to back private inspections for our clients and many zoom meetings with prospective purchasers. We also secured a property at 9pm Saturday night after only viewing it at 4pm that day. Some properties are selling quickly and we are expecting a very busy spring season.
In Regional Victoria, Vicky Whittaker (Elite Buyer Agents – Regional) purchased a terrific off market property in Geelong for our client. Our client’s brief was to purchase a development site with potential for three townhouses for around $700,000 which we were able to achieve. There has been an increase in off market properties being listed and there have also been many reports of Melbourne buyers purchasing properties sight unseen.
Stay dry and have a great week.
Kim Easterbrook
We are one week in to Metropolitan Melbourne now being allowed to conduct private inspections and there is no doubt the property market is active. There was a lot of confusion at the start of the week as to what was and wasn’t allowed but there now has been some clarity around that. In addition to private inspections, photographers, videographers and stylists are allowed access to the property which means newly listed properties will come onto the market, and building inspectors are allowed on site.
So you would think that it is now business as usual however I don’t believe the amount of private inspections that the selling agents are currently conducting is sustainable. I spoke to countless number of selling agents who had been standing at the one property all day, everyday, showing ‘qualified’ buyers through. Some agents having to conduct over 100 inspections for the week with their executive assistants helping to open properties and working Sunday to get all the prospective buyers through.
This does show though that there is buyer demand with many agents reporting the buyers coming through their properties are new to the market. Stock levels still remain low but we believe that will increase over the coming weeks as new properties come onto the market.
We had an extremely busy week at Elite with back to back private inspections for our clients and many zoom meetings with prospective purchasers. We also secured a property at 9pm Saturday night after only viewing it at 4pm that day. Some properties are selling quickly and we are expecting a very busy spring season.
In Regional Victoria, Vicky Whittaker (Elite Buyer Agents – Regional) purchased a terrific off market property in Geelong for our client. Our client’s brief was to purchase a development site with potential for three townhouses for around $700,000 which we were able to achieve. There has been an increase in off market properties being listed and there have also been many reports of Melbourne buyers purchasing properties sight unseen.
Stay dry and have a great week.
Kim Easterbrook
We received terrific news in Melbourne yesterday with some COVID-19 restrictions easing which included private inspections for real estate now a permitted activity. This is welcoming news for vendors, buyers, landlords and tenants. It is also our understanding that any necessary marketing services are also allowed (being photographers, videographers and stylists) which means we should see many new listings come onto the market.
There are strict safety requirements that must be adhered to with private inspections limited to one agent and one prospective purchaser or tenant who may be accompanied by one other person from an existing household or their partner.
The agent must confirm with the occupier of the property prior to the inspection to ensure they are not symptomatic, self-isolating or under quarantine prior to attending the property. The person who is occupying house must leave the property for the inspection for one of the four reasons under the stay at home directions during the inspection.
The agent is required to have all the internal and external doors open during the inspection so the property is well ventilated. Face coverings must be worn at all times and physical distancing is to be maintained.
Any surfaces touched during the inspection are to be disinfected by the agent at the end of the inspection however it is required that any touching of surfaces is to be kept to an absolute minimum. Hand sanitiser must be provided by the agent and the prospective tenant or purchaser must use it prior to entering the property.
We will see many online auctions for the remainder of this year and we may have some onsite auctions with limited numbers before the year is out.
We could also see some changes in lending very soon as the government last week announced they are reviewing lending regulations with the aim to simplify the lending process. The current process due to the Royal Commission and COVID-19 has become more intrusive and difficult. The bottom line is the government is wanting to increase credit which translates into more spending. These changes will increase buyer demand and combined with low interest rates makes it a very attractive time to buy.
We are very much looking forward to a very busy week. Hope you have a great week too.
Kim Easterbrook
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Some good news this week with the unemployment rate unexpectedly falling to 6.8 per cent in Australia from 7.5 per cent the previous month. The number of people in employment increased 111,000 as restrictions were unwinding across the country. In Victoria, unemployment rose to 7.1% from 6.8% which is below the highest point in June at 7.5%.
With COVID-19 cases declining rapidly in Melbourne, it may be possible that the hard lockdown may be eased earlier than the October 26 expected date. Feedback from many selling agents that many vendors are still being non-committal about selling, however, I suspect as the case numbers keep declining in Melbourne, that vendors will start to gain some confidence to list their property for sale. There is no doubt buyers keen to buy and opportunistic investors are circling. I am predicting it will be a very active Spring/Summer season.
I have requested Chris Devlin from Quora Financial provide some interesting statistics in relation to mortgages.
Have a great week.
Kim Easterbrook
Australian lenders are open for business and doing as much as they can to attract new business through low interest rates and onboarding incentives.
Despite the obvious headwind, the Victorian market remains remarkably buoyant with Leading Aggregator, Connective, reporting $3.3 billion in Purchase Approvals and $3.7 billion refinance approvals so far in 2020 from their 20% market share. Further, in the 6 months ending August 2020, Victoria accounted for almost half of Westpac’s 3000 national credit approvals. Almost 70% of all borrowers nationally are taking advantage of the record low fixed rates on offer.
Unfortunately, industries such as hospitality, travel and tourism understandably find it difficult to convince lenders that credit is a good idea right now. Lenders are also assessing credit applications more closely than they were pre-COVID 19. For example, before COVID-19, lenders would generally assume novated lease payments paid through salary deductions were paid on time and correctly. Now, they will ask for a statement. They won’t make assumptions. Application turnaround times are taking a few days longer as a result.
So, is the extra information and time taken to obtain credit worth the effort? The low cost of finance makes it an attractive time to buy. For those looking to review their finance, the difference between the interest rates offered today and even recent legacy interest rates are significant. Customers are saving thousands per year, so I’d say that is a resounding yes!
Chris Devlin – Quora Financial www.quorafinancial.com.au
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With the daily cases of COVID-19 rapidly declining and with the first easing of restrictions today in metropolitan Melbourne, we are starting to sense a little more optimism as there is now light at the end of the lockdown tunnel.
That being said, based on Daniel Andrews comments yesterday, it does not seem that private inspections will be allowed in Melbourne any earlier than Step 3 on the Roadmap which is estimated to be the 26th of October. We do remain hopeful that the declining case numbers mean that this could come sooner. Fingers crossed.
For metropolitan Melbourne, this means that the normally active Spring season will only have a six to seven week window before the Christmas shut down period. This year has been far from a normal year and it seems that selling agents are already preparing to work through December/January and all the way to the end of March (Easter). There will be a lot of catch up to do over this period as buyers and sellers currently remain in a holding pattern.
Regional Victoria is still transacting as private inspections continue but open for inspections and public auctions with a COVIDSafe plan may recommence within weeks.
The rental market has remained active during lockdown with properties leasing out via virtual videos. This segment of the market has adapted really well and whilst not many buyers will purchase a property based on a video tour, many tenants have been happy to sign a lease.
Enjoy the sunshine this week!
Kim Easterbrook
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Melbourne’s Real Estate Industry was hit with some disappointing news yesterday as the Premier released Victoria’s Roadmap to Recovery.
As it stands, there will be no private inspections allowed in metropolitan Melbourne until the 26th of October in devastating news for buyers and sellers. There had been a glimmer of hope that we were going to reopen at the end of September, but this did not eventuate.
The news is better in regional Victoria where case numbers are very low and the roadmap to recovery should be quicker. However, Geelong has been put on notice due to higher case numbers and, is on close watch.
So for metropolitan Melbourne, we are still in a holding pattern for another six weeks. This means the properties that selling agents have listed for auction next month will need to be postponed. There is also an issue for some vendors who have sold their home and now cannot buy. These vendors could be pushed into the rental market.
For regional Victoria, private inspections and online auctions will continue and possibly public auctions may be allowed by end of November with gathering limits applying.
There will no doubt be an economic fallout for the slow road to recovery, and it is very frustrating for everyone living in Victoria. Let’s hope everyone does the right thing and we can achieve our targets so we can start to live life with some kind of normality again.
Hope you enjoy the sunshine today.
Kim Easterbrook
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Refer a friend to our Buyer Advocacy or Property Management services and enjoy a $200* voucher to Stokehouse Restaurant for a relaxing lunch or dinner by the Bay in St Kilda.
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Melbourne’s property market remains quiet but some properties that were listed pre-lockdown have sold and the odd property selling where the buyer has purchased sight unseen. New property listings are down 50% which is not surprising. Property prices have remained stable and the property market balanced due to many buyers and sellers holding off transacting until the property market reopens again, hopefully in two weeks’ time.
One auction that did occur on the weekend was the online auction of 1 Douglas Avenue, Box Hill South. The auction attracted four bidders with the property selling for $82,000 above its reserve for $1,052,000.
Regional Victoria has remained active (albeit listings on the lower side than normal) with Stage 3 restrictions allowing private inspections. According to some selling agents, there has been an increase in enquiry from Melbournian’s wanting to move to the country and also an increase in first home buyers, particularly in Geelong, wanting to purchase a home with the option to commute to Melbourne for work.
In Geelong, two ‘renovator delights’ sold well above reserve at auction over the weekend. One being in Belmont and the other in Geelong West. Geelong West has been highly sought after for many years and Belmont an up and coming area and popular due to its affordability and access to good schools.
79 Isabella St, Geelong West sold for $602,500 in a marathon 45 minute auction which sold $130,000 over reserve. The house was not even liveable whilst 62 Oberon Drive, Belmont (another renovator’s delight) sold for $40,000 over reserve.
Have a great week.
Kim Easterbrook
Refer A Friend and Receive a $200 Voucher to Stokehouse.
Refer a friend to our Buyer Advocacy or Property Management services and enjoy a $200* voucher to Stokehouse Restaurant for a relaxing lunch or dinner by the Bay in St Kilda.
Please contact our team on 9592 1122 or email admin@elitebuyeragents.com.au
* Offer applies to a referral that leads to the engagement of our services.
