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C&G’s Guide to the 2019 Property Market Summary
As we wrap up 2019, it is always interesting to reflect upon on the factors that influenced the year’s results. It was certainly unique 12 months across Melbourne’s property landscape, with historically low cash rates impacting upon the market and changing consumer habits and confidence. Some Victorians opted to sell their assets under robust buyer competition, with purchasers choosing to snap up these potential investments. The latest blog from C&G unpacks the year that was in Melbourne’s real estate market. Read on!
It came as no surprise when the Reserve Bank of Australia (RBA) cut the official interest rate from 1% to 0.75% in October – an attempt to combat Australia’s slow economic growth by encouraging consumer spending. Following their December meeting, positive market changes have been observed and growth continues at an optimistic rate. Melbourne continues to buzz with activity from home buyers, sellers and investors. Low interest rates are also attracting first home buyers to enter the market – a sector of the market who have been broadly unrepresented in the recent past.
As we approach January, property prices may continue to increase. Melbourne saw its property values peak in 2017, and growth is currently only trending 3.7% below this high. Competition is heating up with more vendors putting their assets to market, satisfying a gradual increase in buyers. Days on market are also decreasing, which suggests additional purchaser enthusiasm. This in turn is leading to enhanced auction clearance rates nationwide, with Sydney and Melbourne at the forefront.
The real estate market in Bayside will prove tightly-held and fiercely contested in 2020. Interested in what’s upcoming on the property calendar? Chisholm and Gamon are your first port of call.