Based on Reported Auction Results*
Melbourne Real Estate Market Finishes 2016 On A High
The final quarter for 2016 finished with residential auction success rates in Melbourne putting in another very strong performance. Any result where close to 80% of all types of properties in all metropolitan areas on a weekend are able to find a buyer, gets an “A” for effort. Many weekends in the last quarter reached or exceeded this figure. An outstanding result. Eighty per cent is considered to be an upper limit. Anything beyond that is stellar.
The reasons behind this cut-off mark are simple. Amongst all the properties submitted for auction, there will invariably be those that are going to be difficult to sell. Busy main roads, undesirable general location, poor presentation/condition and a vendor who has price expectations that are unrealistically high, are all strong contributors that lead to the remaining 20% that will be unsold. However in a good market, many if not most of these left-over twenty per cent will eventually find a buyer. With auction sales, it is worth remembering that the marketing campaign only takes place in earnest over four weeks. The intention is to build competitive interest leading to a positive outcome in a short time-frame. As circumstances in the real estate market are currently, this is generally very successfully achieved.
Where is the market heading in 2017? Our response to this question remains unaltered. If the present environment of low interest rates and unemployment continues and this is accompanied by no overseas “shocks”, then why should it change? We also maintain solid immigration which is continuing to provide demand for our property in the capital cities. In our view, it is probable a status quo situation in the presence of the above is most likely to continue continue.