There were 407 auctions held in Melbourne last weekend ending 30th June 2019 showing a clearance rate of 73% according to the REIV. At the same time last year (June 2018) there were 706 auctions with an auction clearance rate of only 62%.
Melbourne’s auction clearance rate of 73% suggests that the Melbourne property market may have bottomed out and is on the way up again. And, dwelling values in Melbourne have increased by 0.2%, according to data released recently by property analytics firm Core Logic. Tuesday’s interest rate cut decision by the Reserve Bank will certainly play a further role in improving market conditions.
But, although there are encouraging signs in respect to the Melbourne property market, the facts still remain that the real estate prices in Melbourne are still down between 20% – 30% from their 2017 highs. So rather than be too optimistic I think you need to be still very careful about what you pay for a particular property. How do you combat this issue? Undertake thorough and detailed due diligence.
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.