QUIET CUP WEEKEND
As always, the following in no way constitutes financial advice and no warranty is offered as to its accuracy or validity. The reader is to make their own inquiries prior to making any decisions.
As expected, it was a very quiet weekend for Real Estate in Melbourne. The Tuesday Holiday makes many Melbournians turn it into a four day weekend before the rush into Christmas. For Saturday the 3rd November there where only a few Auctions in the target areas I monitor.
For the whole of the Melbourne Metro area clearance rates have again remained very consistent; The published clearance rates (PCR) for the weekend was 54%. Another increase of 2%. It was off a low number or reported Auctions though, 153 with 83 reported as sold and 70 passed in, and 23 either withdrawn or postponed. Of those reported, 56 were houses, 29 apartments and 4 being registered as land sales. Looking deeper into the numbers over the weekend there were 283 Auctions scheduled with results for 153, or 54% reported. Without counting any unreported results as sold, that would show a stable clearance rate of 29%. While down on previous weeks by around 6%, the anomaly of the weekend makes it a number of little consequence in my opinion.
The reported outcomes for the areas are as follows;
- Albert Park – Middle Park – Port Melbourne – St Kilda West – South Melbourne; No Auctions scheduled or reported, 1 private sale.
- Southbank – Melbourne; 1 Auction scheduled, passed in.
- Werribee – Werribee South – Wyndham Vale – Hoppers Crossing; 2 Auctions scheduled, none reported, 5 private sales.
- Glen Iris – Armadale – Hawthorn – Hawthorn East; 3 Auctions reported, 3 sold.
- Seaholme – Williamstown – Newport; No Auctions scheduled or reported, 1 private sale.
In the week ahead the market will return to normal with only 5 or 6 Saturday’s left for the Spring Season. In the Port Philip area there are around 20 Auctions for example.
Tomorrow the Reserve Bank of Australia will deliver it’s rate outcome, which is widely expected to remain on hold, although with the cost of funding for the banks increasing and their low earnings numbers, don’t be surprised if we see the banks increase another 25 basis points this side of Christmas outside of anything the Reserve Bank does.
During the week it was reported that Financial comparison site Mozo conducted its annual home loan “mystery shop” by posing as existing customers of each of the big 4 banks. They found that all 4 were prepared to haggle, up to 83 basis points, on their standard variable rates, so long as the customer had the right financials and a 80% LVR. (LVR is a finance term for “loan to valuation ratio” – so if you where buying a $100,000 house, you have $20,000 cash and are borrowing $80,000, your LVR is 80%)
JLL’s latest Apartment Market Report has reported that Melbourne’s Apartment pipeline is down by around 34%! The city’s rolling five-year pipeline of units completed, under construction, in marketing, approved or submitted for approval dropped to 57,900 in the September 2018 quarter from almost 87,000 in the same quarter for the previous year. Melbourne’s population show’s no signs of slowing either and with concerns even as long ago as 2017 of an undersupply of Apartments and Houses in 2020 for Melbourne this trend will only exacerbate the problem.
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Licensed Estate Agent
0419 536 905