The Melbourne property market seems to have changed this year.
My comments are not based on facts or figures but the “gut feel” of the 3 licensed estate agents who work for Metropole and are out in the market place all day buying properties as buyer’s advocates.
At our meeting the other day they felt that:-
1. Fist home buyers are back buying in the outer suburbs. They are being helped by the State and Federal government grants as well as lower prices.
2. Established home buyers are purchasing in the middle suburbs. There is little stock there for them to choose from and vendors are now prepared to “meet the market” while last year most vendors were expecting unrealistic prices.
3. Investors are cautiously returning to the market. Most recognise that there won’t be the capital gains of the past few years and they are more yield driven.
It’s a good start to the year, but we’ll have to see what transpires.
Michael Yardney
METROPOLE PROPERTIES
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FREE subscription http://www.metropole.com.auThat’s an excellent summary Michael; you have IMO described the Melbourne market perfectly!! [biggrin]
Cheers,
Jo
Thanks for your insight Michael.
There is two different areas that I believe causes confusion about the current state of the market.
Activity/sales…having friends & family in r/e, there has been a definite pick-up in activity over the last few weeks, with many more people out looking at properties. This coming after the end of last year where things were extremely quiet.
And price expectations have certainly being scaled back by vendors, after last year, however there seems to be some small little swing upwards…How sustainable that is in the long-term, not sure.
Given this is now (Feb-April) the strongest sales period for r/e at least in Melbourne, this might not be unexpected. However, the perennial complaint I hear from the R/e industry being the lack of quality stock is even louder now than it has been.
Interesting how things pan out during winter and if there is another rate hike… I tend to think, everyone is waiting to exhale in the property market ATM, with so many mixed signals every week about the miriad of influences on RBA rate policy and the economy in general…..Time for cool heads I suspect [suave3]
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