Weekly Market Update - May 8, 2019
By Advantage Property | 8th May 19
Rate cuts and a consistent auction clearance rate.
The Melbourne market continues its consistent performance with a clearance rate of 56% from 443 auctions. There was some strong results for properties that had a “wow factor”. We saw reserves being smashed for a warehouse in Princess Hill which sold for $207,000 above reserve, an art deco apartment that sold for $140,000 above reserve in Alexandra Avenue, South Yarra and then another older style townhouse in Fitzroy which sold for $85,000 over reserve. These results support an improvement in the marketplace and these results weren’t there late last year and the clearance rate was much lower.
The property market correction has affected many other industries, it shows that new car sales have taken another major decrease from about 22% lower compared to a year ago in Victoria sales buying dropped around 11% with 2,500 less vehicles being sold.
Many in the property sector are hoping for the RBA to cut rates to help stimulate some more demand in the market for property so pensioner’s that rely on their interest and savings will not be favouring the rate card if the Reserve Bank cuts official interest rates this month or next month as it hits poorer retirees hard.