The week ending on 23rd of June recorded a clearance rate of 70 per cent compared to 69 per cent the previous week and 64 per cent during the same time last year. There were 479 auctions reported to the REIV, with 334 selling and 145 being passed in, 66 of those on a vendor bid.
Is this a sign of a recovery?
Over the past 18 months, property owners faced overall dismal property news, falling prices caused by stricter lending practices, overseas buyers leaving the market, proposed changes in negative gearing and capital gains tax. Now that the election is over, and clearance rates are rising, many experts believe the worst has passed.
New figures from the economic researcher, Moody’s Analytics, has forecasted property price growth across every Australian capital city next year, except Hobart.
Moody’s national index for home values has fallen for almost two years, but Sydney, Melbourne, Brisbane, Perth, Adelaide, Darwin and Canberra will all see a steady recovery in 2020, according to the Moody’s Analytics report.
House prices in Australia’s two biggest cities, Sydney and Melbourne, are forecast to grow a modest 3.1 per cent and 1.3 per cent respectively.
Following a projected 10.8 per cent fall for 2019, Melbourne will see a 1.3 per cent upswing next year, followed by a healthier 6 per cent in 2021.
“By early 2020, house values across most of Greater Melbourne are forecast to experience a return to month-on-month growth,” said Moody’s.
“Overall, Greater Melbourne house values are expected to tick up 1.3% in 2020, with Melbourne-Inner East and Melbourne-North East leading the recovery.”
Source: CoreLogic, Moody’s Analytics
Xynergy Realty recommends that now is an excellent time to pick up the books and start looking for small updates that can turn to your benefit. At Xynergy Realty, our property consultants are always on the lookout for even the tiniest changes in the market.
It is ideal to speak with an expert to know your next step in Melbourne’s current real estate market. Feel free to claim your free no obligation property consultation with Xynergy Realty to understand where your property stands in the market at the moment.