WBP Market Wrap

Market-Wrap-banner-V2---web

Summary
This year - Auctions: 1192 / Clearance rate: 82%
Last year - 
Auctions: 51 / Clearance rate: N/A
Source: REIV

Collectible properties on the rise.

The month of March has given rise to three super Saturdays, boasting an estimated average clearance rate of 79%. The high success rate, coupled with high volumes, is testament to surging market demand in Melbourne at present.

The weekend confirmed quality well-located assets, both units and houses, are performing well. However, despite strong demand B-grade apartments are experiencing patchy performance.

The most well-attended auctions are those offering something special – that being a rare or unique property type or a “collector’s item” period home. Like rare coins or vintage cars, Melbourne isn’t adding to the supply of period character homes, with classical Victorian styling or the beautifully crafted Art Deco brickwork become a thing of the past.

As city boundaries expand and populations increase these increasingly rare property types represent a decreasing proportion of housing stock, with positive implications for the growth of these assets.

While all buyer types remain active, it’s experienced buyers that are dominating the market – including established buyers, experienced investors and off course buyers advocates. One such example was the auction of a quality 1950s apartment in Hawthorn East, which drew a crowd of more than 40 and was subject to strong competition among well-prepared buyer’s advocates who were prepared with realistic limits. The property sold within a fair range reflective of demand for quality established property in the area.

Dissatisfaction from missing out, together with the high pressure of auctions, is seeing an increasing number of prior offers from inexperienced bidders. While agents are sometimes receptive to this, current demand for quality housing lends itself to sale via auction to maximise the price outcome for the vendor.

If you’re considering a prior offer, act strategically – that means, act early (not right before the auction) with a time limited offer, and not one subject to finance.

Speak with a WBP Property Adviser about how we save you time and improve your chances of buying a property with the right fundamentals for growth. To find out more click here or contact us on 1300 302 581.



Disclaimer: © 2017 WBP Property Group (WBP). The WBP Market Wrap has been produced as a general guide and does not constitute advice. While it was produced in good faith and with due care, no representation is made for the accuracy of the whole or part of the document. WBP accepts no liability for damages suffered by any party resulting from their use of information in this presentation.


SUBSCRIBE
Receive the WBP Market Wrap each Monday by subscribing here.

Price growth impacting Melbourne property trends.

Summary
This year - Auctions: 1068 / Clearance rate: 81%
Last year - 
Auctions: 1671 / Clearance rate: 74%
Source: REIV

Melbourne gave host to is third consecutive super Saturday at the weekend, notwithstanding the Labour Day hiatus, boasting an overall clearance rate of 81%.

The strong performance of late has many asking, “can Melbourne sustain such high clearance rates?” For the moment, the simple answer is yes. While auction numbers appear high, they represent a drop in volume of 25% to 35% when compared with this same time last year, which will further test the relationship between supply and demand in coming weeks, particularly when it comes to houses.

Melbourne property full of life this autumn.

 

Summary
This year - Auctions: 1094 / Clearance rate: 81%
Last year - 
Auctions: 1218 / Clearance rate: 74%
Source: REIV

Melbourne property delivered the second consecutive super Saturday for the year, with an estimated 1100 properties offered to the market at the weekend. This was a positive start to the autumn market, with clearance rates remaining strong.

According to REIV, the 2016/2017 summer period marks the highest number of auction sales on record, boasting almost 5600 sales – the result testament to the desirability and strength of demand for Melbourne property.

While the balance of power has shifted from investors to homebuyers, both groups remain active participants in the market, albeit competing for somewhat different stock at times.

Super Saturday activity confirms strength of market.

Summary

This year - Auctions: 1198 / Clearance rate: 82%
Last year - 
Auctions: 1236 / Clearance rate: 76%
Source: REIV

Melbourne property is going gangbusters, with the weekend the first of many super Saturdays - that is, weekends with over 1000 auctions - expected for our city this year.

Though, what’s perhaps most interesting about the result is the exceedingly strong clearance rate. Rates at 70% or above indicate solid demand, and the presence of strong capital growth. A rate of 82%, however, is exceedingly high and the result of an undersupply of suitable housing for the city.

Market opens with gusto.

Summary
This year - Auctions: 867 / Clearance rate: 79%
Last year - 
Auctions: 953 / Clearance rate: 75%
Source: REIV

Mid-February is considered the unofficial opening of the Melbourne real estate market – a time when the summer holidays are all but behind us and we’re making plans for the year ahead. And, as expected, the year has open with the same ferocity with which it closed in 2017. Property pundits in Melbourne sprang to action at the weekend with a whopping 867 auctions and an equally impressive 79% clearance rate.

While the weekend gave host to slightly fewer auctions than the same weekend last year, the month of February is scheduled to offer more than 3100 auctions to the market, according to REIV - representing an increase of three percent when compared with last year.

And that's a wrap...

Summary

This year - Auctions: 1264 / Clearance rate: 80%
Last year - 
Auctions: 1543 / Clearance rate: 67%
Source: REIV

Well, that's a wrap. The Melbourne real estate market is now winding down for another year so we're taking a brief hiatus over the summer break.

But don't worry, we'll be back again in February with all the latest in Melbourne real estate, together with the usual tips and tricks to maximise your outcomes when dealing with property.

Until then, enjoy our final Wrap and, from the team at WBP, have a safe and enjoyable festive season and summer.