SALES MARKET UPDATE.
As the leaves have fallen and the supporters of a certain FC have begun waxing their skis, housing stocks in the blue-ribbon suburbs have fallen as well. This is normal. Everyone sees their place being sold on a sunny spring Saturday. Until they realize there are so few of them in Victoria.
The Melbourne real estate market has been in slight reverse for almost twelve months, thanks largely to Scott Morrison and APRA. Which means buying gets easier. It’s been recently speculated by the Deputy Governor of the Reserve Bank that the Royal Commission might further restrict the amount of money in the housing market by increasing lending standards. An occurrence to be applauded by those looking to buy, because it means, in essence, that your money will be competing against fewer iffy loans, and you’ll get more bang for your buck.
And as far as Abercromby’s market space is concerned, well, it’s almost counterintuitive but elite properties can act as a haven from the decline in property as a whole. If the market in general looks dubious, people retreat to the top end, where there is long-term certainty. And that’s where we are. In any case, ANZ economists believe the recent decline is a blip, and predicted a 2 per cent gain this year and 4 per cent in 2019.
Late autumn saw some terrific sales. Quality homes in prime locations are hard to come by at present, so there’s really healthy competition for them when they do become available.
The top end of the real estate market seems to be largely unaffected by the current market decline, and as such it is a drift largely contained in the outer suburbs. And even the small fall in the market we’ve seen, or are likely to see, is negligible in comparison to the robust property price increases of recent years. Trends can reverse. But Australian house prices have grown by over 8% per annum for more than fifty years. That’s not a trend.
If you’re looking to sell or buy quietly and discreetly, contact one of the ABERCROMBY’S team on 9864 5300.