Local Market Update - May 2017
As an agent, the question I have been asked the most in the last few weeks is “Do you think the market is softening?”
The latest economic data remains mixed with unemployment at a year-high of 5.9 %. Retail spending has fallen and although inflation has increased, levels remain at near record lows. After breaking the record for the longest run of uninterrupted economic growth in the developed world we narrowly missed a March quarter of negative growth – there has only been 3 other quarters of negative growth since the recession in the early 1990s. It is anticipated this will worsen next year as China’s growth slows.
We have also experienced a fall in Australia-wide house pricing for the first time in 18 months.
So, my feeling is whilst Melbourne’s market remains a reliable sellers’ market in the short term, and the most consistent of all the capital city real estate markets, the heady growth of the past four months is steadying. We are likely to see minor growth for the remainder of the year boosted by the potential of a near-term rate cut by the RBA. Next year however, is far less certain.
If you are thinking of selling, all signs are pointing towards late winter early spring as the optimum time to catch the market before any potential downturn. Please contact me at any time to discuss your property.
Locally, there were only 19 sales in Beaumaris for May – only up slightly from 14 over the Easter and school holiday period. There are 26 properties currently on the market – significantly down on 36 last month.
In Black Rock, there were only 13 sales for May only up slightly from 8 over the Easter and school holiday period with 22 properties currently on the market.
In Cheltenham there were 37 sales in May versus 28 last month with 74 currently on the market.
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