Are we in a changing market?
A lot has been spoken about the ‘race that stops the nation” but the weekend prior in real estate it was all about “Super Saturday”, 28th October. A new record was achieved with 1789 auctions held compared to the precious record of 1712 in November 2015. Understandably given the volume of property on offer the average clearance dropped slightly to 76% compared to the year-to date average of 78% across the city according to the REIV. South Yarra, Richmond, Camberwell and Hawthorn hosted a staggering 92 auctions between them but no more auctions were held in 1 street than Regent Street, Elsternwick where 5 houses on “The Block” went under the hammer with 5 different agencies. We are extremely proud to have paired with contestants Josh and Elyse selling 46A Regent Street for $3,067,000 winning them the competition and total price money of $547,000! Now bring on the infamous Gatwick Hotel in St Kilda!
In other news The Reserve Bank remained in the stalls on Melbourne Cup Day deciding to leave the cash rate unchanged at 1.5% for the 15th month in a row. There has not been an official cash rate increase since November 2010.
Also this month Corelogic and Commsec have reported the market might be slowing. Only three of the eight capital cities in October saw dwelling price increases. Hobart (up 0.9%), Melbourne (up 0.5%) and Brisbane (up 0.2%). Sydney fell by – 0.5%. Sydney prices are up a still healthy up 7.7% on a year ago and Melbourne prices are up 11% for the same period however this is a significantly slower growth rate than 8-11 months ago.
With no further public holiday interruptions the real estate market will have a clear run to Christmas with auctions all the way until 16th December. As in previous years I expect furious competition with buyers digging extra deep over the next 6 weeks to get themselves out of the market as fewer properties remain available. This a much more popular approach that the prospect of having to start the property search a-fresh in February or March and go into battle for another year.