A word from Philip Webb

A word from Philip Webb

Since the start of November, an influx of new listings have hit Melbourne’s property market as vendors regain their confidence following an 18-month period of repeated COVID-19-induced lockdowns.

While this recovery is positive for our real estate industry, the increased levels in stock have caused buyer demand spread, resulting in fewer bidders at auctions and a drop in numbers at open for inspections. Some properties are also passing in at auction, with negotiations afterwards often sealing the deal.

So, what do these changes tell us about the direction the market is headed?

Open for inspection and auction numbers are usually a good indicator of what is happening in the market. The market is really sensitive to price, so if a property is priced incorrectly, people won’t attend. For vendors, work with your agent to ensure your property is priced right and accurately reflects the current market – which is currently undergoing significant changes.

As normal levels of stock return to the market, we will likely see property prices across the city steady somewhat. Houses won’t continue to sell at runaway prices as they have since the start of the year.

I heard a great analogy about the current state of the market the other day. Effectively, we have been driving down the freeway for the last six months at 100km an hour with little traffic on the road – now we’re back driving at 80km. The market is still moving, just not as fast as it was.

My advice for buyers in the current market is to get in and purchase before Christmas. Further changes to lending and potential rate increase predicted for early next year will result in prices taking that step forward again.

If you are looking to buy or sell your property before Christmas and would like to discuss your options, give us a call today!