There were 711 auctions held in Melbourne last weekend ending 26th May 2019 showing a clearance rate of 64% according to the REIV. At the same time last year (May 2018) there were 979 auctions also with an auction clearance rate of 64%.
Melbourne’s auction clearance rate of 64% suggests that the Melbourne property market may have bottomed out and is on the way up again. Bigger crowds and optimistic real estate buyers marked auctions across Melbourne at the weekend, the first since the re-election of the Federal Coalition Government that many people are now saying why property may be the new flavour once again…
Although, things are now appearing much brighter and more positive than before for real estate, prices are still down 20% – 30% from their 2017 highs. But the question which you need to seriously ask yourself is whether this increase in demand is fair dinkum or merely a ‘dead cat bounce’. Given this recent increase in Melbourne’s auction clearance rate and buyer activity we’re now seeing, it could well be a ‘dead cat bounce’ which may be short-lived and temporary. In any case, my take on things is that it’s still very much a buyers’ market out there in Melbourne which is fantastic for first-time home buyers and first-time investors.
Your Australian Property Tips #
Don’t be fooled by a lower price when assessing a property for potential purchase! Firstly, make sure the property is the “RIGHT PROPERTY” first and foremost before you start concentrating on the price. Remember, there’s always the hidden danger for buyers to either buy the wrong property or overpay for a property, as not everyone can buy the right property because there are only a limited number of them available.