What are property buyers thinking this June?

Over June's four weekends the Real Estate Institute of Victoria (REIV) recorded more than 2,967 auctions. 2,010 properties sold. 1,505 at auction, with 944 passed in. 502 properties were sold before auction & 3 properties were sold after auction. The clearance rate was 68%, down on May’s 70.75%.

Property market analysts CoreLogic summed current conditions up last week saying “a fall in sales volumes at a time when access to credit has become harder and interest rates are on the rise”.

According to market analyst PropTrack’s latest Home Price Index, Melbourne experienced its first real home price decline in two years in May. On their index the typical house value slipped 0.25% to $902,000 last month (dropping about $2260).

What are property sellers thinking?

Sellers will be thinking, will they go for a sale now before prices possibly fall further, or hold off expecting there’ll be less supply going forward through Spring/Summer which means less competition from other homes on the market.

What are property buyers thinking?

Buyers are thinking prices could drop more, or should they grab a home now before interest rate increases and inflation eat more into their capacity to make loan repayments? Waiting too long might also mean they won’t be able to borrow as much.

Smart buyers also realise that if other buyers are holding back and waiting, there’s less competition at auction right now.

Most property sellers have adjusted

The reality is Melbourne market has been cooling for six months now and most sellers have adjusted. And as long as you sell then buy in the same window (period) both selling and buying are subject to similar value expectations. We’re all in the same boat.

A great many buyers are also selling their previous home, as part of the transition to a bigger or better home.

Buyers look hard for a home and you can be certain, when a really good property does come up, that’s prepared very well for maximum appeal, and marketed expertly, the right buyer will not want to miss out. Especially if it’s a family home.

Disclaimer: The contents do not constitute legal advice, are not intended to be a substitute for legal advice and should not be relied upon as such. You should seek legal advice or other professional advice in relation to any particular matters you or your organisation may have.