HOCKINGSTUART ARMADALE – DECEMBER 2017
Will it be a strong start for the property market in 2018?
Spring, as predicted, was a busy time in the Stonnington real estate market with record amounts of activity. There were 2806 auctions held in the final two weeks alone of November, following on from 4,956 auctions in October, the highest number ever recorded for that month indicating the high number of auctions to finish the Spring. This resulted in a clearance rate of around 70%–73% for the final weeks of the month, compared with 76.4% for the last 12 months – this lower figure hardly surprising given the large volume of auctions taking place.
Looking back on the year we’ve had at hockingstuart Armadale, there are some standout results that we think are worth mentioning; 13 Wheatland Rd, Malvern – selling for $1m over reserve; 5/5 Lewisham Rd, Prahran – setting a new record for 1 bedroom apartments in Prahran; 12 Auburn Grove, Armadale – flying past vendors expectations; or 41 Westbourne St, Prahran – setting a new standard for the Hawksburn Village pocket. We can’t wait to get a record result for you in 2018!
It’s not all about the sellers as there’s also good news for homebuyers too, as the citywide median house price growth moderated in the September quarter as new policy initiatives increased sale volumes at the lower end of the market. New REIV data shows the metropolitan Melbourne house price recorded its lowest increase in almost two years, up just 0.7% in the September quarter to $817,000. REIV President Richard Simpson said the moderation was attributable to 44% of all sales in the September quarter being below $600,000. Despite the moderation, the market remains strong with the Melbourne median house price up a remarkable 14% on the same period last year.
This continued high level of activity was fuelled by good consumer sentiment and consistently low interest rates. Most experts predict the The Reserve Bank of Australia (RBA) will most likely raise interest rates in 2018 but not until late in the year. Sub-par growth thanks to still falling mining investment, slowing housing construction and weak consumer spending along with low underlying inflation and the desire to keep the Australian dollar down will likely see the RBA keep interest rates on hold for the next year. But by late next year growth and inflation should be strong enough to allow the RBA to start raising rates.
With new listings for 2017 coming to a halt and the last auction weekend taking place on the 16th of December, the focus will soon shift onto early 2018. The pre-Easter auction market has become a reliably strong and dynamic sellers’ market over the last few years driven primarily by a lack of property on the market over the Christmas/New Year period leaving buyers ready to roar as we kick things off in the New Year.
If you have family or friends looking to get something before the year is out, make sure not to miss out on some of the great property we have available now, including some blue-chip locational property at 93 York Street, Prahran (link) & 1/46 Denbigh Road, Armadale (link), 90 Chatsworth Road, Prahran (Link)
We are anticipating unprecedented results for the start of 2018 – so if you’re thinking about selling your property, book in your auction now – or alternatively speak to us about the success we’ve had with off market sales this Spring.
We hope you have a fantastic Christmas Break and Happy New Year!