Market Wrap (REIV)
A clearance rate of 79 per cent was recorded this weekend compared to 75 per cent last weekend and 81 per cent this weekend last year. There were 516 auctions reported to the REIV, with 408 selling and 108 being passed in, 45 of those on a vendor bid. Melbourne’s north is performing strongly at present – Mill Park and South Morang have recorded the highest auction sales this month, with South Morang also delivering nine per cent price growth in the June quarter.
Melbourne and Sydney Markets Defy Experts
NAB released the bank’s second quarter survey last week and the results will surprise many. House prices are set to rise faster than the predicted 5.1 per cent this year due to stronger than expected growth in Melbourne and Sydney (AFR).
Price growth has picked up since March in the two largest cities and in the year to June, Melbourne homes rose 12.1 per cent, while Sydney gained 11 per cent, the NAB’s latest quarterly survey shows.
Brisbane (7.6 per cent), Adelaide (3.9 per cent) and Hobart (4.9 per cent) also benefited from ”solid and generally better-than-expected” growth, the report said, explaining the increase in its annual forecast from the 1.5 per cent national figure it predicted three months ago.
But the good news ends here with house price growth next year expected to slow to a meager 0.5 per cent across Australia.
“We have maintained our expectation that the housing market will cool appreciably, despite the near-term strength,” the report says. “Our average national house price forecast for 2016 has been revised up…Price growth is then forecast to stall while fundamentals (namely wages) begin to catch up.”
The outlook for apartments is worse, with prices expected to fall in every city except Adelaide and Hobart.
The above findings fall in line with current strong housing activity in Melbourne. We are seeing more first home buyers and investors looking to secure a property.
Auction clearance numbers over the weekend were solid reaching the critical 80 per cent mark (APM). “We are now moving from a market which has performed consistently to one performing strongly. Since the July 2nd election, buyer and bidder numbers have consistently increased and this trend is set to continue”.
Globally, share markets have regained their losses from last year further adding stability and boosting consumer confidence.
A Grade stock in the inner city continues to be elusive for many agents. The word on the street though is that vendors are beginning to prepare their homes for an August sale, one of the best selling months on the calendar.