New listings in Melbourne Increase Post-lockdown
Posted by Tristan Angelini on 17 November 2021
Many parts of the city are enjoying strong demand for real estate and despite really expensive prices, homes are selling like crazy. Melbourne, in particular, is experiencing booming real estate due in part to frustrated buyers and sellers wanting to get their hands into a property and rushing to make deals that are not only smart but profitable deals. Experts are now predicting that the market may soon slow down.
More homes are currently listed for sale and as the competition gets more intense, signs are showing that things are going to be less crazy soon. New home listings show that there is a rise to 32.7 percent in October compared to the previous month according to figures released by Domain. It was on September 18 when private inspections reopened in Melbourne and for each listing, one is sold so it’s evident that the market is currently booming.
Open for inspections and auctions have been well attended of late. Many investors are seeing “extraordinary prices being set well above the vendors’ expectations this spring”. People who had to hold off on their investment plans due to the lockdowns and restrictions as a result of a spike in COVID-19 cases rushed to get the best deals, pushing the market into a whole new level of excitement. However, such excitement is not meant to last. Experts are now predicting that urgency among buyers will soon flatten out and auction clearance rates will normalize.
The property market has been incredibly strong and the stock that’s coming to the market in the outer eastern suburbs which were previously tipped in favor of sellers than buyers is becoming more even. Prices, although still at high levels are not rising at the moment.
So, is now a good time to sell a property?
Fletchers Mooroolbark director, Daniel Bolton is seeing a shift and says that right now is certainly a good time to sell, but it’s a bit more balanced now.
In the 12 months to September, Melbourne house prices have soared to 16.8 percent according to figures by Domain. As for home values, there was a 1 percent rise in figures in October according to CoreLogic. In the same month, the auction clearance rate was 75.3 percent which is the strongest for 2021.
Properties are selling for high prices right now and look like there’s going to be more. Prices are expected to come down a little bit. Competitions at auctions will continue, and demand is still high but some sellers are waiting for the new year which is in less than 2 months as of this writing. There has been an apparent slowdown for the C-grade properties in the $2 million range, but there is some good stuff that buyers are really dying to get their hands on.
Potential buyers wanting to get mortgage approval are steady, but the changes in lending rules are starting to take effect with the bank regulations cutting 5 percent from the maximum borrowing capacity for new borrowers, according to mortgage broker Chris Foster-Ramsay. He adds, while the temperature of the market is no longer red hot, it is still considered quite warm.