Hungry buyers are keeping Victoria’s property market hot, even as the state was pulled in and out of lockdown during July.
Figures from CoreLogic reveal more than 171,000 properties were sold in the three months leading up to July. This is 53.4 per cent higher than the average figure recorded for the same quarter in the previous five years.
In contrast, just 121,200 properties were newly advertised for sale in the second quarter this year, highlighting just how strong selling conditions are.
Research from Mortgage Choice showed the number of listings in Melbourne dropped 27 per cent in July alone, likely caused by vendor uncertainty during lockdown and the slowdown we typically see in winter. Meanwhile buyers have become more confident with virtual auctions, as figures from REA Insights show that so far in 2021 there have been 82.7% more sales in Melbourne than for the same period in 2020.
The continued scarcity of advertised listings coupled with our historically low interest rates are providing the perfect fuel for our property prices, which rose by 1.3 per cent in July.
Demand has also been enhanced by new incentives for first home buyers introduced in 2020, such as the first home loan deposit scheme, stamp duty reductions and discounts for new and off-the-plan properties.
These significant factors have helped Victoria’s housing market grow by 10.4 per cent so far this year, reaching a median house value of $945,769. Units in Melbourne have hit a median value of $612,711.
Noel Jones achieved phenomenal results for vendors in July, with an overall auction clearance rate of 88 per cent for the month.
Every property auctioned online by Noel Jones was sold over the lockdown weekends of 18 and 25 July, including a three-bedroom home in Mooroolbark that sold for $852,500.
There were strong auction results across the state, with bidders snapping up 87 per cent of properties auctioned in July.
Repeated lockdowns are also spurring people to spend more time looking at properties online. Data from realestate.com.au shows a rise in search volumes coincided with Victoria’s lockdowns, as did a spike in enquiries to agents.
We expect to see a flurry of extra activity in the market as we cross into spring, which is typically Melbourne’s busiest season for property sales.
We’ll watch closely to see if the pandemic interrupts this pattern, which is unlikely given how strong Melbourne’s market continues to be.
For expert guidance on your property journey, contact your local Noel Jones office.