Healthy start to 2013
The 2013 residential market has commenced with the same improving trend that last year ended with.
The REIV is recording both an increase in clearance rates and listings, a situation that reflects the improved confidence of Victorian consumers.
From the perspective of listings buyers are being presented with more homes to choose from than was the case over the past three years. Auction listings until Easter are 20 per cent above the 10 year average.
The trend of increased volumes culminates on 22 and 23 March with the 9th largest weekend ever with 1,140 auctions expected.
Clearance rates have improved but not to the extent that we are likely to see unsustainable price growth. February saw the highest monthly clearance rate since May 2010 with 70 per cent of homes offered at auction selling. Last weekend saw a small reduction, but one that is both clearly better than last year and historically healthy when compared to the long term clearance rate of 66 per cent.
The key to this trend being maintained is confidence. Whilst consumer confidence – partly driven by low interest rates and lower prices – remains better than a year ago the auction market will remain healthy.
Courtesy of REIV.com.au