Each Week I provide an up to date report to my vendor’s with insights into not only their buyer’s feedback and price interest but also the wider market in general. 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.
The Local Market:
Market activity in Wyndham still remains consistent, with Domain reporting 5 sales in Werribee, 6 in Manor Lakes/Wyndham Vale and 3 in Hoppers Crossing – the highest sale being $735,000 and the lowest $375,000 both of which were in Werribee. The majority of the sales sat around that $480,000 to $600,000 mark.
The Larger Market:
This week there were 736 Auctions held in the Melbourne metro area. Compared with the same time last year this is around about 500 fewer auctions and just under 300 fewer than last week. The clearance rate was 56% compared with 67% from 2018 and 53% from last week.
Fundamentally, these numbers are still very good when you consider that the weather was 38c and not conducive to crowds and 56 out of 100 vendors on the weekend got the price they wanted, generally 30 to 60 days, cash no other terms. The problem at the moment is that the market perception after several years of an amazing property growth is dragging on buyer sentiment.
Realestate.com.au is showing that there were 906 private sales last week and while auction is still a very good strategy for vendors to consider, they are clearly preferring to go down the private treaty route.
Today at 2:30pm, the RBA as expected, held rates at 1.5%, and will hold them there for the short term. If the market remains soft, it may reduce rates in June or July by 0.25% (25 basis points). Some are tipping as early as April. On the 22nd of February RBA Governor Lowe presented to the House of Representatives. I will not review the whole speech here, though “HOUSING” was highlighted on 10 occasions with the Board reminding us that it is something they do watch closely and while over the years many Reserve Banks have moved quickly, the RBA has had a more measured mature approach, considered against wage growth and consumer spending. Some statements;
“Turning to the Australian economy, the Board has recently been paying particularly close attention to the strength of household spending and to developments in the housing market.”….. “Household consumption accounts for almost 60 per cent of total spending, so what happens on this front is important.”
“We do, though, need to keep things in perspective. The adjustments in the Sydney and Melbourne housing markets are occurring at a time of low unemployment, low interest rates and strong population growth. What we are witnessing is largely the working through of shifts in supply and demand for housing due to structural factors. In both markets it took a long time for supply to respond to faster population growth, so prices went up. And now that supply has responded, some of the earlier increase in prices has been reversed. I understand that these swings in housing prices are difficult for some in our community. We should, though, take some reassurance from the fact that our economy and our financial system are resilient. This adjustment in the housing market is not expected to derail the economy. It will put our housing markets on more sustainable footings and allow more people to purchase their own home.”
For more industry news and updates, visit my Facebook page. If you have any property needs or questions, please feel free to contact me for a confidential chat. Additionally, if you would like to be updated once a blog is up, please feel free to subscribe with your email on the right-hand side of this page. No spam, only blog posts.
Licensed Estate Agent
0419 536 905