Weekly Market Update 21st May 2019
By Advantage Property | 21st May 19
Is now a good time to buy in Melbourne?
The Melbourne’s auction market had a smaller volume of auctions with the election with 285 auctions but the strongest clearance rate of the year with 65% clearance rate. Many of our investor clients are happy there will be no change to capital gains tax and negative gearing as the Liberal government was elected and Labor lost the election they were clear favourites for.
The strongest result we saw was a 2 bedroom townhouse in Roseneath Street, Clifton Hill that sold for $1,060,000 with 7 bidders fighting it out. There was also a strong result for a house in Delatite Court, Vermont which sold for $837,000 with a $780,000 reserve. These results are definitely showing improvements and there were 6 bidders fighting for this property and we wouldn’t have seen this amount of bidders late last year.
There is now much talk that the RBA will decrease interest rates as the Aussie dollar falls and unemployment has increased. It now looks almost certain that rates will drop a couple of times this year which should stimulate the property market. We are often asked whether it is better to buy first or sell first if you are changing over your property portfolio. There are pros and cons to both approaches but selling first may give more certainty in terms of the real achievable price for your property.