The latest industry data for the number of days properties have remained on the market before sale is another sign that Melbourne’s housing buyers are crying out for more vendors to sell their properties.
The latest REIV Days on Market (DOM) figures show Metro Melbourne home vendors had their properties on the market for a median period of 34 days before a sale in August. That’s the lowest DOM figure in more than a year and down from a high of 50 days in February.
In Inner Melbourne in August, homes spent a median period of 41 days on the market, down from an annual peak of 52 in May. Middle Melbourne home vendors waited a median period of 38 days before a sale in August, well below a peak of 63 days in February, while Outer Melbourne vendors waited only 35 days for a sale, compared to a high of 50 recorded in February.
“These figures demonstrate again that demand for Melbourne property is outstripping supply,” REIV Chief Executive Officer Gil King said. “We know from our members that buyers are keen to get into the market following the price correction we saw earlier this year, and we have now had 12 consecutive weeks of auction clearance rates of more than 70%, with the past five weeks above 75%.
“These clearance rates are well above what we saw in the corresponding three months last year, but volumes of available houses are well down.”
As a result of these strong auction results, the time is right for vendors to put their homes on the market, Mr King said. “Interest rates are historically low, and the Australian Prudential Regulation Authority’s recent relaxation of bank lending guidelines has made it easier for more buyers to enter the market.
“Spring is a traditional strong sales period, and with fresh demand from buyers, now is the time for anyone thinking about selling a house or a unit to act.”