Market Update 7th July 2020
By | 10th Jul 20

Melbourne’s property market continues to see solid results and at the top end, the corona virus does not seem to be having an impact. We saw this first hand with the sale of our family home in Normandy Road Elwood last week where we smashed the local Elwood record. We had 6 bidders pushing the price well over $1,000,000 over the reserve and selling well above the previous recent record sale of $6.6 million in Byrne Avenue only a month ago. 

With interest rates on hold again and at record low rates, this will continue to entice young first home buyers into the market as well with the top and bottom end of the markets continuing to perform well. As of 1st of July, the new loan deposit scheme which allows first home buyers to buy with a 5% deposit was reintroduced for the first 10,000 buyers.

Ten thousand First Home buyers already took this up from the 1st of January to June when all places were filled. This allows them to get into the market now and with interest rates now being offered at below 2%, the market under $600,000 is now seeing very strong demand. Even with the removal of investors, we have seen an influx of first home buyers helping to stabilize this end of the market. 

Also the government is propping up the market further by allowing another $10,000 withdrawal from super which can be put towards a home, on top of the previous $10,000 in the last financial year.   Melbourne's property market had a 70% clearance rate from 300 reported auctions with a volume well below the average of at least 500-600 auctions on a weekend. The market will continue seeing lower volumes moving forward.