Weekly Market Update - 28th November 2017
By Advantage Property | 28th Nov 17
Your weekly market update by Frank Valentic
As I predicted, there is more opportunities for buyers from the larger volume of auctions and now we have two to three auction weekends left before everything finishes for the year so buyers would need to get in there and purchase a property in the next few weeks, otherwise they will need to wait until around mid February before the market starts up again. On the weekend, there was a clearance rate of 69% from another Super Saturday volume of 1275 auctions.
Melbourne’s property market definitely hasn’t peaked yet as we are still seeing some record and runaway results every weekend. These runaway results have slowed down in Sydney as their market has peaked and their clearance rates have dropped between 50% to 60% showing that the market has changed to a buyers’ market from a sellers’ market. There was a record result in Armstrong Street, West Sunshine that sold for $1,315,000 with six young families fighting it out for the keys. Who would have thought that West Sunshine which was predominately an area dominated by commission housing would now be achieving these $1,000,000 plus sales? It shows how the ripple effect has pushed buyers out from Footscray West, Sunshine and now into West Sunshine as they try to get family homes with a backyard. I predict this will continue in the next twelve months at least.
Recently there was talk about interest rates potentially going up next year but most of the experts have disagreed with this now due to the low inflationary figures. Experts don’t think the rates will go up at all in the next year to two years with possibly a rate rise in 2019 but that is also not for certain. Our inflation is so low and the interest rates have not risen for the last seven years and that has given consumers and buyers confidence that interest rates are at an all time low and are well below the long term average where I have paid around 7% for the last twenty two years for my own portfolio and they are well below that as you can get rates around 4% to 4.5% at the moment.
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