Source:REIV

Market Wrap (REIV)

A clearance rate of 78 per cent was recorded this weekend compared to 72 per cent last weekend and 77 per cent this weekend last year. There were 601 auctions reported to the REIV, with 468 selling and 133 being passed in, 66 of those on a vendor bid. East Melbourne recorded the highest clearance rate of any Melbourne suburbs in the three months to 30 June (100 percent), followed by Fitzroy North (96 percent), Blackburn South and Caulfield South (95 per cent).

Source: AFR Victorian property surges in latest municipal revaluations

Valuer General Sees 39 Per Cent Price Rise in Melbourne Suburbs

The big economic news last week  was the release of the all critical Consumer Price Index number at 1.5%. This is important as it indicates our rate of inflation shown to be falling in our economy, what’s known as deflation and is below the RBA’s target of 2-3%.

Although paying less for travel and accomodation, motor vehicles and telecommunications sounds great in the short term, the main concern is that our pay packets aren’t increasing, which is the real problem. The reason for this is related to our underemployment levels despite on the surface Australia’s unemployment rate looking strong. Over the past few years the number of people working full time has been falling while casual and part time work has been on the rise.

This week interest rates are back on the agenda. The Reserve Bank are meeting on Tuesday to discuss the potential for more rate cuts. Economists are tipping a 64% chance of a the cash rate being cut by a further 0.25% to 1.5% which although sounds good for mortgage holders has alarm bells sounding on the state of the nation. Another cut should serve to stimulate our ailing economy but  inadvertently it will also stimulate the property market further in Melbourne and Sydney.

At a global level, share markets have bounced back strongly however savvy fund managers have trillions of dollars in cash sitting on the side lines waiting for an imminent correction.

As far as the property market, only Sydney and Melbourne are going gangbusters. Melbourne recording another strong (78%) clearance rate over the weekend and racking up a 7% house price growth so far for the year with Sydney at 9% price growth. This means housing prices for these two cities are on track to show double digit growth yet again! Doomsayers must be crying in their soup!

Still not convinced of the rise? According the Victorian Valuer General’s office both residential and commercial property values have surged 20 per cent to $1.87 trillion in the past two years (AFR).

This is the largest biannual jump since the valuation system reformed in 2000 and has been driven by Melbourne’s residential market (22%), in particular by property located in the east.

Valuations jumped over 30 percent in the municipalities of Monash, Whitehorse, Manningham and Maroondah.

In Monash which includes Chadstone, Glen Waverley, Mount Waverley, Oakleigh and part of Burwood valuations rose 39 per cent.

What our Clients Are Saying?

We found Peter Sarmas from Street Advocate took the hassle out of finding the right agent to sell our property and ensured a maximum result. By using Peter and his company we avoided the need to come up to speed on the most effective way to sell our property, as Peter has many years of experience to leverage on.

Not only did Peter find the best agent and negotiate a great commission rate for us, his fee was included in this negotiated fee! He kept up to date weekly with all the details, allowing us to focus on other things. We got a fantastic outcome, $130k above the reserve price. For us using Peter again would be a no-brainer.

Karl and Henty Punt, 118 Bridge St, Eltham

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