June 2014 Market Overview
The 1st of July marks the end of another financial year and the crazy retail sales, and for the property market the usual slowing of activity, or is it?
The first half of 2014 has been an auction ripper; 18,000 homes have gone to auction compared to about 14,000 in the first 6 months of 2013 and these higher volumes have not impacted auction clearance rates which still hover around the 70% mark. The next weekend is the middle of the school holidays, traditionally the low point in the winter market and yet Victoria is set to conduct just under 500 auctions.
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Every capital city has seen improvement in dwelling values over the financial year and Melbourne’s, comes in at just under 8%. While this growth is not predicted to continue, it is certainly having an impact on supply and demand.
Investor demand however, is likely to move away from the high growth centres of Sydney and Melbourne in search of the next mover as rental yields continue to be challenged. With news of 2000 new apartments to be built in Melbourne over the next few years, this has already got some investors mentioning over supply.
We have strong buyer interest and activity and support from owners looking to capitalise on recent growth. The next few months and the rest of 2014 in the residential sales sector is looking promising.