Those looking to buy a home or investment property are acutely aware of the lack of choice that’s characterized the market in the last few months.
But, while lack of supply has frustrated buyers (and agents!), it’s contributed to very competitive auctions and private sale campaigns.
Strip everything away, and the real estate market is fundamentally about Supply and Demand. Supply has been down, and Demand has remained relatively stable; the result is more interested buyers per listed property.
This graph shows the number of properties sold across Melbourne’s Northern Suburbs over the last 2 years. It highlights how unusual the last 6 months have been in two ways…
Firstly, it’s typical that fewer properties are sold in the January-June period than are in the July-December period. In the first 6 months of 2015 (Jan-Jun), 10% fewer properties were sold compared to the last 6 months of 2014 (Jul-Dec). But, in the first 6 months of 2016, 22% fewer properties were sold compared to the last 6 months of 2015. That’s a massive seasonal difference in properties sold.
Secondly, it’s normal to see some differences in sales volumes year-to-year. In Jul-Dec 2015, sales volumes were up nearly 4% compared to the same period in 2014 (that’s normal). But, in Jan-Jun 2016, sales volumes were down nearly 11%. That’s a big year-on-year fall.
Ultimately, lower supply of quality properties has probably been a good thing for the market, in that it’s perpetuated stable growth without the frenzied activity that can lead to overheating.
All the statistical analysis above has been provided by the independent company Property Analytics Australia. Details of micro areas can be provided on request.
Get a Free appraisal
Knowing the true value of your home in today's market requires more than looking at numbers or graphs. A Nelson Alexander Property Expert can assess your home and provide some real and specific insight into its potential value. Fill in the form below for a free, no obligation appraisal of your home.
The Latest
The Latest
Latest News
Where to find the best (and free) Hot Cross Buns in Melbourne this Easter
Discover Melbourne's top bakeries for delicious, fresh Hot Cross Buns. From traditional to chocolate, vegan to sourdough, this guide has your Easter cravings covered. Plus, get a FREE Hot Cross Bun at...
Gardening in Melbourne: The best vegetables to plant in the autumn
Cultivate a thriving vegetable garden in Melbourne's cool autumn weather, even with limited space! Discover the best vegetables to plant, and space-saving tips. Enjoy fresh, homegrown produce year-rou...
Craving a delicious, healthy and easy weeknight meal? Look no further than Julia's Teriyaki Chicken Rice Bowls with Cabbage Salad and Pickled Carrots! This flavorful dish is packed with protein, veggi...