Monthly Market Update July 2020
By | 16th Jul 20

Melbourne’s still continues to be seen as a Sellers’ market as clearance rate were averaging around 65-70% for the month and stock levels were down around 50% on previous years. This is seeing the balancing of supply and demand and while demand where around 50% on previous years. This is seeing the balancing of supply and demand with less demand has dropped off due to investors and developers deserting the market, low stock levels are propping up prices.

 

The top end of the market continues to perform well and there were 10 sales recorded from around $13.3 million up to $23 million mostly in suburbs like Brighton and Toorak where the majority of them were recorded as well as suburbs like Red Hill, Armadale & Portsea. I experienced the strength of that market with the sale of our home in Elwood beating the previous $6.6 million record in Byrne Avenue. Six bidders pushed the price $1.74 million over our reserve.Showing that the top end is bullet proof at the moment. 

 

There continues to be much of stimuli that the government is providing to prop up the market. As of the 1st of July, people can access another $10,000 in super totalling $20,000 this year. This is as well as First Home Buyers being able to access the loan deposit scheme which allows the first 10,000 buyers to buy with only a 5% deposit and requires  no mortgage insurance. Also the banks have announced they will extend loan deferral periods for up to 12 months for eligible customers.

 

Though unfortunately the real estate market has been affected just as all other businesses and the economy have been affected with the reintroduction of stage three restrictions in Victoria. This has meant that live auctions and open for inspections had to be cancelled again. Although properties can still be sold with the new Covid restrictions with online Auctions and Expressions of interst campaigns dominating.