Rare Melbourne market conditions have buyers and sellers rejoicing
Rare fertile conditions have combined to produce a housing market ripe for both buyers and sellers, experts say.
Rising auction clearance rates, home values and confidence in the past month all point to a market rebound.
CoreLogic’s most recent Hedonic Home Value Index shows Melbourne’s median dwelling value increased 1.4 per cent to $626,703 for August.
It was the third straight month of increased value and the biggest monthly increase since late 2017.
Realestate.com.au chief economist Nerida Conisbee said demand for property spiked following the federal election and successive interest rate cuts in June and July.
Ms Conisbee said although access to finance remained difficult for buyers, lower interest rates and eased lending restrictions were creating a favourable market for buyers and sellers.
“There’s been a lot of stimulus put into the market and buyers are definitely back,” Ms Conisbee said.
“But it’s taking a while for sellers to get back into the market — that’s really the sticking point.”
Ms Conisbee said she expected to see more vendors list their properties on the back of strong results to start the spring season.
The auction clearance rate has remained above 70 per cent for the past month, the first time since November 2017 the rate has been over 70 per cent four weeks running, according to CoreLogic.
“If you have a look at some of the auction results in the first couple of weeks (of spring), it’s showing some quite outstanding results,” Ms Conisbee said.
“Once sellers start to see price movement, that will give them more confidence as well.”
“It’s difficult to be a buyers’ and sellers’ market but now is a great time for both — it’s a pretty unusual environment.”
CoreLogic auction analyst Kevin Brogan said it was common for confidence to take longer to return for vendors.
“We’ve seen some fairly solid indicators coming out of the market in clearance rates and hedonic price indices suggesting there has been some growth,” Mr Brogan said.
“We are still returning to form after an extended period of softer market conditions.”