Weekly Market Update - 5th June 2019
By | 5th Jun 19

The current property market

Melbourne continues its recovery with the property market picking up and increased demand from many buyers at auctions across Metropolitan Melbourne. Melbourne had a fairly solid 65% clearance rate from 520 auctions and there has definitely been a pickup in consumer confidence. The 2 strongest results we saw were the family home segment of the market which has been patchy and up and down. There was some strong bidding for a house in Josephine Grove Preston which sold for $1,390,000, $190,000 over reserve with 5 bidders pushing hard and a downsizer won the keys.  Another solid result was for family home in Mt.Waverley which saw 2 families fight it out. It sold for $1,510,000, $155,000 over reserve. Being in the Mt Waverley Secondary College zone was a very big factor as school zones are always popular.

 

Melbourne’s properties are taking less time to sell as the days on market has decreased over the past 3 months from 60 days to the current market rate of 43 days. This is predicted to keep improving as Melbourne’s market conditions improve with recent developments.

 

A number of property analysts have suggested that with two interest rate cuts by the RBA that many borrowers buying capacity will increase by 30% on average. If a buyer could purchase at $1 million, they could now purchase at $1.3 million.

 

Melbourne’s market is presenting more affordable opportunities at the top end of the market. Nine of the top 10 most expensive postcodes recorded negative growth in median house prices since last year. Brighton jumped to be the most expensive suburb with a median house price of $2.2 million.