Market Snap Shot
Melbourne home values have increased by +7.60% over the past three months and are +7.60% higher over the past year. The annual rate of value growth has slowed from a peak of +14.2% in September 2017
Melbroune’s Median House Price: $826K, Interest Rates: On Hold 1.75%, 28 New Million Dollar Suburbs
Buyers Or Sellers Market?
Strong clearance rates and high auction numbers through to mid-December indicates a strong finish to the year. Melbourne is Australia’s fastest growing state and with a strong economy and low interest rates, buyer demand is likely remain strong through 2017: Melbourne Growth Suburbs.
The reserve bank lowered the cash rate in May 2016 by 25 points , the current rate: 1.75%, rates have remained unchanged since. More info on interest rates check out our monthly RBA report.
Rental Vacancy Rates
Vacant properties in metro Melbourne fell slightly to 2.1 per cent in August, while remaining stable in regional Victoria to 2.3 per cent. Median or Average rent for houses in metropolitan Melbourne fell to $420 a week.
Melbourne Auction Market
The Melbourne auction market reported another increase in auction activity over October with clearance rates rising from 74. percent over September to 76.3 percent. This was also well ahead of the 69.0 percent recorded over October 2016. Average weekend auction volumes fell over the month from 800 to 706 and also remained well below the 862 averaged over October last year. Across Melbourne, the market is likely to remain steady, with solid results in a range of areas across the city. While listings remain low and clearance rates high, the REIV expects median house prices to increase once again in the December quarter followed by the traditional slowing in January before picking up again by March.
Check out Weekly Melbourne Auction Results.
Median house price
Melbourne’s median house price has increased by $22,000 to $822,000 for the first time, new data from the REIV shows.
Below is an example of Melbourne’s mean house price’s over the last 30 years which demonstrate aggressive price growth over the last 9 months.
Over the previous 12 months, there were 10,668 dwellings sold for at least $2 million, 10 years earlier there were 3,254 sales and 20 year earlier there were just 236 sales.
The value of foreign investment approvals for Australian residential real estate surged 75 per cent last financial year to a record $61 billion and could account for around a quarter of new developments.
Data from the Foreign Investment Review Board show that there were 36,841 applications by non-citizens who were also not permanent residents to buy residential properties.
Melbourne Growth Suburbs.