The Melbourne property market has continued to see a steady clearance rate however we have began to see a shift in the market. Good quality family homes and A grade properties continue to perform well, with record results continuing to be achieved by some however overall we are seeing properties sell within the ranges we would have thought they should. This shift is being impacted by an increase in stock and no doubt the upcoming election as well as talk of interest rate increases are also key factors.
Family homes have continued to perform well we missed out on one in Littlewood Street, Hampton for a client with the property selling well above the quoting range of $3.6m – $3.8m for $4.5m. We have seen that renovated or new family homes have continued to perform well as their supply is still on the low side while unrenovated family homes are not performing at quite the same strength. It will be interesting to watch if interest rates do rise what impact this will have on family home stock levels as currently the low stock is helping to keep this market buoyant.
The impact of interest rate rises remain unknown at this stage however the RBA has not increased interest rates since 2010, meaning many mortgage holders will have a significant shift in mentality with them only used to their rates going down not up and the unknown of what the future holds will no doubt impact their mindset about stability and certainty in the market. This could however mean some great buying opportunities as we potentially see a shift from a sellers to a buyers market.