As we all know, the start of 2020 has been an incredibly challenging time for many Victorians, from the drought and disastrous bushfires to the impact of several unseasonable weather events and more. It seems there are very few people in our State that haven’t been touched by these recent events, whether directly or through family and friends, so our heart goes out to those that are still trying to get their lives back to some degree of normality.
The good news for anyone making plans to buy or sell property in 2020 is that the real estate market seems to have picked up right where it left off in December.
Whilst many people are aware that the property market rebounded strongly during 2019, it is worth noting that the majority of that rebound occurred in the last quarter of the year. Data from Corelogic shows that whilst our market grew by a total of 5.3% annually after bottoming out in the first half of the year, the growth rate in the December quarter was 6.2% which was one of the strongest performances the market has seen for some time.
What many people are unaware of is that these figures are based on property settlements rather than sales, so there is an inherent time lag that affects these numbers. Based on our own results and observations of what has been happening since the start of the year, we believe that many areas of Melbourne have experienced even stronger growth than Corelogic’s figures suggest…perhaps as much as 10-15% in some areas.
We are seeing huge buyer numbers right across Melbourne, resulting in some impressive auction results so far in 2020. Melbourne’s auction clearance rates have ranged from the mid 70’s to above 80% in recent weeks, confirming the high levels of buyer competition. Vendors in some areas of Melbourne have been quicker to respond to the favourable market conditions than others, but the overall picture is still one of a market where buyers numbers far exceed stock levels.
The result of this ongoing shortage of available properties for sale is that prices are up. Indeed, some sellers have been achieving results that are nothing short of remarkable.
At this stage it seems likely that the current seller’s market will persist for the next few months at a minimum, opening the door for local home owners who may have been holding off until they could be sure that the market rebound was not just a short-term ‘knee-jerk’ response to last year’s cuts to interest rates.
As is always the case, the key to making the most of these conditions is getting the right advice from the start, and structuring a plan that maximises your opportunities, whether you are selling, buying or both. So don’t hesitate to call on our team’s experience.
Of course, if you have any general questions about the current property market, or you have a friend or family member who is considering making a move, we are always happy to help so feel free to give us a call at any time.