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Market Report: March QTR


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 2015

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.


Interest Rates

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. 

 

Melbourne Auction Market

The Melbourne auction market reported another increase in auction activity over October with clearance rates rising from 75.8 percent over September to 76.3 percent. This was also well ahead of the 69.0 percent recorded over October 2015. 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 surged over $800,000 for the first time, new data from the REIV shows. In the three months to December 31, Melbourne’s median house price increased 5.0 per cent to a record high $770,000.

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.

YearMedian Price
198589,107
1990163,655
1995160,876
2000243,133
2005399,243
2010633,232
2015581,355

 

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.

 

Foreign Investment Review Board News Realises:  FIRB-AR-2014-15_Main_Points

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
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Wise Blog

More information on Mark RibarskyBuyers Agent blog


 

 

Our head buyer’s agent Mark gives his commentary at what is happening in Melbourne real estate market.

Great news for Sellers as the market shows no signs of slowing down. The December quarter was stronger than expected and the market is only expected to improve.

Every day people ask me is now a good time to buy property? I look at our big brother city Sydney where the median house price broke though $1M in the third quarter of 2015, by comparison the Melbourne market has quite a way to go. Melbourne, previously the hottest housing market in the nation up until recently, saw house prices rise by 1.6%, taking the gains since February to 2.1%.

According to the latest Home Value Index released by CoreLogic RP Data, Australian capital city house prices jumped by 5.0% in Jul, Aug & Sep Qtr, leaving the increase over the first five months of the year at 5.0%. Based on current market conditions remaining consistent the future out look for the market cooling further seems highly unlikely for the short term.

Australian banks tightening home lending criteria since it began a crackdown in late 2014 measures have strengthened lending standards in the housing market. This has been noted by the RBA and APRA. Growth in lending for housing purposes has slowed a little this year. 

Mark Ribarsky, Wise Real Estate Advice.