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Market Update: May

If you’ve been following the news on the property market recently you will no doubt have seen reports of a shortage of available property for sale in many areas of Melbourne. However, what many Melburnians don’t seem to appreciate is just how tight the market actually is right now, and how much this is affecting the results that many vendors are achieving.

Make no mistake, the property market in many areas of Victoria is genuinely crying out for more property listings. We are seeing buyers literally queuing up to inspect new stock as soon as it hits the market, and multiple offers from separate buyers has been quite common.

This is great news for anyone selling at the moment, as the imbalance between a surplus of motivated buyers and a shortage of available property means that there are, quite literally, more buyers per property. This situation has meant that there has been increased competition between buyers, often resulting in higher prices being paid.

Although right across the board results have generally been strong, the south-eastern suburbs have performed better than most. This month we had four stand out examples of this where auctions in Carnegie and Parkdale each sold for in excess of $100,000 over vendor expectations. We received 12 offers on a modest 3 bedroom home in Noble Park that sold for $555,000, more than $50,000 over vendor expectations. While further down the highway we sold a property on the peninsula for a whopping $275,000 over a sworn valuation, achieving a new record for the suburb. All amazing results!

With the Federal election putting negative gearing and capital gains tax at the forefront of people’s thinking, we may see some investors holding off on making decisions towards the end of June, when future policies become clearer. But with interest rates having hit new record lows, at this point in time we are seeing strong buyer confidence across most sectors.

With the all-important equation of “Supply vs Demand” so seriously stacked in the seller’s favour right now, I believe the current climate is providing a genuine opportunity for anyone who is planning on selling. History has taught us that once we get to Spring, there will inevitably be a rush of property hitting the market, giving buyers more to choose from and sellers more competition. We only need to look at the slight dip in property prices in the 2015 December Quarter as a recent example of this.

So, if you’re planning your move this year and want the best advice on timing, please call our office to speak with one of our experienced Vendor Advocates. We have 12 of the most experienced real estate professionals in our team, that specialise in areas right across Melbourne.

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