Days on Market data shows Melbourne housing market heating up

Date: 16 Sep 19

Media Release 

The REIV’s latest data for the number of days properties have remained on the market before sale is another sign that Melbourne’s housing buyers are crying out for more vendors to enter the market, Real Estate Institute of Victoria CEO Gil King says.
The latest REIV Days on Market (DOM) figures show Metro Melbourne home vendors had their properties on the market for a median period of 34 days before a sale in August.
That’s the lowest DOM figure in more than a year and down from a high of 50 days in February.
In Inner Melbourne in August, homes spent a median period of 41 days on the market, down from an annual peak of 52 in May. Middle Melbourne home vendors waited a median period of 38 days before a sale in August, well below a peak of 63 days in February, while Outer Melbourne vendors waited only 35 days for a sale, compared to a high of 50 recorded in February.
“These figures demonstrate again that demand for Melbourne property is outstripping supply,” REIV Chief Executive Officer Gil King said.
“We know from our members that buyers are keen to get into the market following the price correction we saw earlier this year, and we have now had 12 consecutive weeks of auction clearance rates of more than 70 per cent, with the past five weeks above 75 per cent.
“These clearance rates are well above what we saw in the corresponding three months last year, but volumes of available houses are well down.”
The time is right for vendors to put their homes on the market, Mr King said.
“Interest rates are historically low, and the Australian Prudential Regulation Authority’s recent relaxation of bank lending guidelines has made it easier for more buyers to enter the market. Anecdotally there is perhaps some reticence from vendors following the correction,” he said.
“Spring is a traditional strong sales period, and with fresh demand from buyers, now is the time for anyone thinking about selling a house or a unit to act.”
Mr King recommended that buyers talk to agents in their area, ask questions of agents about how they would approach the sale of similar properties and seek appraisals from at least three competing agents before making a decision.
“The REIV website is packed with independent, unbiased information about auction clearance rates, median house prices, median rent prices and yields and sales in your neighbourhood, and our Choose A Member service allows you to select an agent in your area based on their performance selling homes like yours,” he said.

Media contact: Jamie Duncan – 0429 476 762