It's Steady As She Goes
The property market is performing very well in an
economy showing marked signs of consistent improvement since last year’s global financial challenges. Reports from across the state are very positive overall, if somewhat varied, which is understandable due to different demands and circumstances in different regions. Some agents, following recent interest rate increases, have noted a slight softening of prices to more sustainable levels after a very heated Melbourne market in late 2009 and early 2010, although turnover remains strong with many properties continuing to sell in record time. Others report a ‘buoyant’ market with no signs of slowing. It is always advisable to contact your local Raine & Horne agent to discuss your particular situation and the best ways to capitalise on market conditions in your area.
Generally however, the latest annual figures show that Melbourne vendors have reaped the benefits of exceptional house price growth. While national annual growth for houses hit 16.2% in the March quarter, representing a six-year high according to Australian Property Monitors, annual growth in Melbourne went through the roof, with a 27% hike in prices the highest growth level seen for 15 years. The unit sector also performed extremely well, with an annual increase in value of 13.7%, the highest in the nation.
Melbourne’s auction market has indeed been resilient, with February and March achieving a record 85.6% clearance rate and April recording 82.7%, still well above the long-term average clearance rate, according to the REIV. In addition, over the last year, the REIV has recorded more sales than ever before, “confirming that the underlying market is still healthy.”
With a slight easing of supply with sufficient listings on the market in some areas, some buyers are enjoying the luxury of a little more choice. Others, however, are competing for too few properties, some of which are being snapped up almost as soon as they hit the market.
First home buyers should be aware that after 1 July, assistance for buyers of existing homes will be reduced, while assistance for those buying a new home will increase. First home buyers of existing homes will be eligible for a total of $7000 in the form of the First Home Owner Grant, whereas those purchasing a new home in metropolitan Melbourne will be eligible for $20,000, comprising the $7,000 grant and a $13,000 Bonus. Buyers of a new home in regional Victoria will be eligible for $26,500, comprising the $7,000 grant, a $13,000 Bonus and a $6,500 Regional Bonus. For further information, please see the State Revenue Office.
Randolph Clements
Chairman
