REIV CEO Enzo Raimondo said that there has been a shift in the residential property market in Melbourne over the past month, with six successive interest rates and unseasonably high auction numbers having an impact.
“The six interest rate rises totaling 1.5% are now impacting on the market”
“Stock levels have also increased with over 50 per cent more homes scheduled for auction over the next four weeks than is usually the case.
“The number of homes on offer at auction is at the same level we normally see in the spring selling season and, in that context, clearance rates remain very healthy.
“Higher stock levels have the impact of providing buyers with more opportunity and reducing pressure on prices. It appears the market is moving towards a more sustainable position than it was in the last quarter of 2009 and the first few months of this year.
“Over the next fortnight there are over 1870 homes scheduled for auction, compared to 1140 last year and 1240 in 2008.
“After the Queen’s Birthday long weekend there are a record 1000 auctions expected with the previous highest for that weekend being 681.
“Even the higher stock levels have not prevented some suburbs from recording clearance rates of well over 90 per cent.
“Avondale Heights and Box Hill South have seen every single home auctioned this year sell. In Abbotsford, Macleod, Ferntree Gully, Ashburton, Blackburn North, Burwood East, Chadstone, Blackburn South, Heidelberg West and Windsor every single home except one has sold.
“Given the unseasonably high auction numbers, the Institute would expect a clearance rate in the mid 70s, which would be consistent with the past few weekends,” Mr Raimondo concluded.
