It seems Melbourne’s property market could have bottomed out, with prices recently starting on an upward trajectory, recording a small amount of growth.
In June prices in Melbourne and Sydney increased for the first time since peaking in 2017, triggering a wave of commentary about the tide turning in these markets. CoreLogic’s Hedonic Home Value Index found dwelling values increased in Melbourne by 0.2% over June (the first rise since November 2017) and by 0.1% in Sydney (the first rise since July 2017).
The housing downturn is now running out of steam, according to CoreLogic, with the recent Federal Election result boosting sentiment, along with improving affordability in the form of reduced interest rates and lowered serviceability assessments. These factors are likely to contribute to a further improvement in market conditions over the remainder of the year.
Buyer sentiment is starting to turn in favour of buying and many factors exist to support a wise property purchase now. Tax deductions have been legislated and interest rates have dropped giving people more money to spend, and the bottom of the market has been reached in areas with strong home buyer appeal, high demand and low stock levels, providing prime purchasing opportunities.
Some auctions are generating $100,000 over the reserve due to low stock levels. While it seems some vendors are still waiting to see how the market will play out, now is the time they should be bringing their stock to the market. They should do so early and before the spring selling season to maximise their selling opportunity.
It’s also a great time for investors to come back into the market to avoid potentially chasing a rising market, as clearance rates are increasing from week to week. The clearance rate recently hit an almost two-year high, reaching over 70%, according to Domain data.
If you want help to identify opportunities in Victoria’s property market from a qualified and highly regarded buyers’ agent, contact us for some advice today.
The lending landscape is changing
Over the past few months the RBA has reduced the official interest rate twice, with the cash rate falling from 1.5% to 1.25% in June and 1% in July, the lowest level on record.
APRA has also reviewed its guidance on serviceability assessments to lower borrowing restrictions, with the 7% floor being scrapped and the buffer rate increased to 2.5%. With many banks, including all of the big four, changing their mortgage serviceability assessment policies, it is now finally becoming a little easier to get finance. Macquarie currently has the lowest floor rate at 5.3%, and every bank has a buffer rate of 2.5%.
With servicing rates falling, banks are open for more business! It’s a unique time for applicants to be in a market with falling interest rates and improving servicing levels. Not only is borrowing more affordable, but money is easier to access.
For those who have struggled in the past to get a loan, now is the time to connect with an investment specialist mortgage broker to help you. We have a number of trusted brokers on our Panel of Partners, and would be happy to refer you. Contact us here for support.
For more information on our property advocacy services, contact us today for an obligation-free discussion.
Why do you need a buyer's advocate ?
Referred by an industry colleague, Shane - a seasoned investor and Licensed Valuer - engaged our Metro buyers agent services to find him a high-yielding investment property, to provide strong annual cash flow. His self directed brief ensured he had the ability to use it himself and for short-term rental.
We were able to successfully purchase a property – a 2 -bedroom, 2-bathroom , 1 – car park apartment - in a sought after pocket of Southbank with excellent proximity to the CBD. The property was secured privately for a price that was a huge $29,000below the vendor’s asking price, which more than covered our fee.
If you want help to identify an investment-grade property like this one, whether it’s a family home or an investment property, click hereto book a time with us to discuss your requirements. It’s 100% obligation free.
Why do you need a vendor's advocate ?
Our client Chris engaged Property Mavens’ vendor advocacy service to sell five apartments for him from his SMSF, that were all managed as short stay.
Running a full-time business made it difficult for him to find the time to research selling agents and assess who was the best one, and determine how much he should have spent on marketing. After we made our recommendations, Chris engaged 3 different agents to assist across 4 different suburbs.
This St Kilda property sold quickly and for $30,000 above Chris's $399,000 asking price. Needless to say, Chris was really happy with the outcome and the agent we recommended.
In his words " Working with Miriam was brilliant. I barely had to lift a finger, and she expedited a fantastic sales process that achieved a record price for my property. Before appointing Miriam, I had just assumed I would find a couple of local agents and go through the normal, painful, guesswork experience. By working with Miriam, it cost me nothing to find an amazing, energetic and skilful agent, and ended up with a far, far higher sale price than I ever expected. Miriam drives everyone in the process to do their part professionally and quickly; with great dividends. If you're selling a property, you'd be crazy not to work with Miriam".
If you would like help to secure a fantastic outcome like this one, whether it’s selling a family home or an investment property, and you’re ready to get started, click hereto book a time to discuss your requirements. It’s 100% obligation free.
Marsha and Nigel engaged our services to buy them two properties to add to their portfolio. After determining a capital growth strategy with development potential, and working with a strict budget, we sourced properties in a high performing cluster of suburbs.
One of the properties we purchased was in West Footscray. It was a renovated 3-bedroom, 1.5 -bathroom weatherboard - that had the added bonus of being able to be subdivided - and we secured it off market.
Aside from earning strong capital growth over the past 4 years, with the property value growing by nearly 20% in the first two years alone, I’m thrilled to say that our lovely clients are about to break ground and start the building process, taking advantage of maximising the value of the site we bought for them. We look forward to sharing the results of the build and the revised value with our readers in the future.
If you want similar results, click here to book a time with us to discuss your requirements. It’s 100% obligation free.
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At Property Mavens we choose to give back to help create social change within our business model. If you use our buyers or vendor advocacy services, you will be helping to make a positive impact within the local and wider community.