Weekly Property News 47th Edition 2021
Let’s go back 2 years ago
Hi Guys, it’s Dean OBrien from OBrien Real Estate with the 47th edition of the Property News for 2021 where real estate information is on the house.
A little over two years ago the Herron Todd White Property Clock graph showed that Melbourne was at the bottom of the market in the property cycle. There was 25% less housing stock coming to market across Australia. The RBA was stimulating the economy with two interest rate cuts one in July and one in October 2019 and APRA introduced the fixed assessment rate of 2.5% above the home loan rate which added an extra 10% to purchasers borrowing power.
Fast forward to today and APRA have tightened lending and stock is up 25 to 40% depending on the suburb and we are in a rising market not at the bottom. Melbourne dwelling values have increased 16.3% in the 12 months to November, mind you this is the second-weakest result of all the capital cities while regional Victorian dwelling values are 24.0% higher over the year.
Fast forward to 2022 and migration restrictions are lifted, international workers, students and investors will return so it’s likely demand will continue in the market for some time still until we see a change in the interest cycle which the RBA has said will come in late 2023 at the earliest.
Auctions across the state peaked last weekend with 2309 scheduled across Victoria with Corelogic capturing 1922 results of which 788 sold under the hammer, 450 selling prior with 443 passing in and 223 withdrawn from auction, which overall gives us a little over a 65% clearance rate. Normally we don’t have 2309 auctions in mid December, it’s more likely to be around 1,000. Within the OBrien network saw again saw another increase in new listings with 99 coming to market, with 88 going under offer, 89 properties selling and our the highest price achieved for the week was $1.67 million
That’s all for this week, I’m Dean OBrien and remember the information provided is of a general nature you should always seek independent legal, financial, taxation or other advice in relation to your unique circumstances.