05 Sep Where is property in September?
It’s Saturday morning, it’s really cold and the rain is about to set in again. The perfect scenario for our buyers as no one should turn up to the auction they were interested in. As the auction is about the start, I look around and there are at least 60 to 70 people, most are holding a paddle with a number on it. That’s when I saw first hand that the property market was bouncing back.
Here is this months update.
Auction Clearance Rate
Sydney’s auction clearance rate has increased to 78.9% as of last weekend. Melbourne’s auction clearance rate was 76.1%. This is the highest we have seen since April 2017.
Property Values
Sydney property values saw a slight increase again of 1.60% for the month following last months increase. In Melbourne, house values were up 1.6%.
Tim Lawless, CoreLogic’s Head of Research noted it was the third successive month of capital gain in Sydney, Melbourne and Hobart and the second successive month of increases in Brisbane. He said, “While the ‘recovery trend’ is still early, it does appear that growth trends are gathering some pace, particularly in the largest capital cities.”
Despite the recent increases in dwelling values, regional Tasmania is the only major region where values are currently at a historic high. Sydney dwelling values remain more than 10% below their previous peak (-13.3%) and Melbourne values are almost 10% lower than the peak (-9.5%). Mr Lawless said, “Although the recovery trend in these two cities continues to strengthen, the expectation is that it will take some time for values to return to their previous highs.”
It seems that more and more people are happy to return to the property market, however strict lending criteria imposed by the banks is still holding some people back. Lenders are intentionally or unintentionally making it harder for people to borrow money.
This could either be a smart move by the governing bodies to control the property market or it could be a major player in the crash of the economy.
“Experience is one thing you can’t get for nothing.” – Oscar Wilde
Thank you for reading,
