Why the housing market is in recovery
Experts are saying we’re now into the next property cycle, what are some of the indicators they’re looking at?
Clearance rates as a clear indicator
There are several signals pointing to the recovery of the housing market. One of the most important indicators, however, is auction clearance rates. Melbourne has seen record clearance rates since the Federal Election, and the latest update from CoreLogic highlights that the September quarter has seen the best clearance rates since June 2017 – 69.9 per cent for combined capital cities, while Melbourne outperformed with 73.5 per cent.
Contributing to high clearance rates is the volume of properties for sale. Melbourne had 15 per cent fewer properties on the market in August 2019, compared to the same time the year before (realestate.com.au). Verifying the hunger out in the market, Realestate.com.au also reports that search volumes are markedly up on its platform.
Other factors showing a recovery
Another thing to note highlighting the markets recovery is the fact that the sector in market that saw the biggest downturn – the premium sector – is now rising in value again.
Something not often discussed but still worth noting is that not all of Victoria was hit but a downturn. Regional Victoria fared well in the latest two years, which can be attributed to jobs growth, infrastructure spending and the fact that buyers are looking for more affordable options.
Across the board median house values continue to climb, along with the clearance rate – showing that there is a clear demand in the market. If you’re thinking of putting your home on the market, now is the ideal time.