News

Melbourne properties being snapped up quickly as demand soars

26 February 2020

If you are looking to buy property in Melbourne right now you’ve got to be quick because buyers are snapping them up as soon as they hit the market.

After a bumper weekend for auctions, both Melbourne and Sydney recorded clearance rates around 80 per cent.

It shows how much property demand has recovered from a year ago, where auction clearance rates in Melbourne were struggling to get past the 50 per cent mark.

Well over 1000 homes went under the hammer in Melbourne this weekend too and the large volume wasn’t enough to dampen demand from hungry buyers, with Domain’s Nicola Powell saying the high volume was a good test for buyer confidence.

“I think yesterday’s result was a real test of 2020 for the auction market because what we saw was a much larger number of homes going under the hammer,” she told Domain.

“And, overall, on the back of much higher volumes, clearance rates are remaining strong and it really shows the confidence and buyer demand in Sydney and Melbourne.”

The rebounding demand and rising prices is making for happy sellers, with seller satisfaction at sale prices now double than that of a year ago.

A survey of 40,000 respondents held by RateMyAgent found net happiness increased from 20 per cent in December 2018 to 41 per cent in December 2019.

RateMyAgent chief executive Mark Armstrong spoke to News.com.

“The first trend in the market is supply in 2019 just fell off a cliff – across the country supply fell by almost 20 per cent,” he said.

“In some more established areas, particularly where people aren’t under pressure to sell as they don’t have a lot of debt on their property, people just said, ‘I’m just going to wait’.”

“The market was always going to go through an adjustment after strong growth leading up to 2018.”

“But the natural adjustment happened at the same time as the royal commission, banks were spooked, lending policies tightened,” he said.

Mr Armstrong told News.com he expects the market to go into a more normal cycle after finding an equilibrium which would probably see a drop in reported sale price happiness.

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