By Antony Bucello & Catherine Cashmore from National Property Buyers - 7th April 2013
A 65 per cent clearance rate was recorded this weekend which is marginally lower than the year to date figure of 69 per cent. Notwithstanding, the property market in Melbourne continues to show modest improvements. We have now had 6 consecutive months during which house prices have improved – albeit, at a modest pace in comparison to previous cycles which saw values peak in the last quarter of 2010.
Sales volumes are also starting to improve across the state with the REIV recording a 9 per cent increase for the month of March. This is the highest increase to date and sits in stark contrast to this time last year. It’s yet to be seen if the momentum can be sustained throughout the winter months with economists split over the continuing direction of the cash rate and consumer confidence still only showing marginal improvement – albeit, early indications are positive.
In annual terms, both owner-occupation and investment lending in Victoria are up by 2.5 per cent and 18.6 per cent respectively – proving the attraction of real estate as an ‘appreciating’ asset. Read more.