A Sure Reason to be Optimistic for 2021!
Happy New Year everyone!
The Melbourne property market has swung back into full-action and there are early encouraging signs we are going to be in for an extremely busy year ahead. In particular, we have seen a real dramatic increase of new buyers coming into the property market including first home buyers, upsizers, downsizers, local investors, interstate investors, expats and property developers purchasing homes with the view of returning to Melbourne.
There were 202 auctions reported on the weekend ending 30th January 2020 with a clearance rate of 82% in comparison to 203 auctions reported the same time last year (2020) with a clearance rate of 69%. At the end of December 2020 quarter, Melbourne’s median house price reached a record $936,000 (an increase of 5.3% over the quarter). Units prices also reached a record high of $570,000
As a result of the Covid-19 lock-downs last year in Melbourne, it has caused massive shortages of housing stock. In turn, this has lead to pent up demand from buyers, therefore more competition is one of the reasons there’s been an increase in the value of property with many residential homes selling before auction or off-market. This has put vendors in a very strong position and selling agents are using many different strategies to obtain the best results for their clients. For instance they may contact serious buyers and say the vendor is interested in selling before auction creating a sense of panic, time pressure and getting you to show your hand.
This is one of the many reasons why engaging a Buyer’s Agent to act on only on your behalf makes sense, we know all the tricks Selling Agents and Vendor Advocates play.
Anyway, happy house hunting 😊