Market looking up

MUCH has been said about Victoria’s strengthening residential property market, but what is underpinning this resurgence?

First, there’s renewed political stability following the State and Federal elections, lending certainty to the market.

Recent Reserve Bank interest rate cuts are taking effect, and the RBA’s decision last week to hold rates at a record low 1.0 per cent adds to market confidence.

The Australian Prudential Regulation Authority’s relaxation of its loan serviceability guidelines last week should make it easier for borrowers to secure finance.

Following the market correction, REIV members say demand for property outstrips supply. These unique conditions offer benefits to both buyers and vendors.

Auction clearance rates have been above 70 per cent for the past three months, with 75, 78, 79 and 77 per cent recorded in the four weeks before the latest figures on rising volumes.

In regional Victoria, auctions are less common but are popular in some areas with 1134 auctions in regional Victoria in 2019.

Regional auction sales are growing fastest this year in Mildura, South Geelong, Morwell, Ararat, and Warrnambool while last month, Lara was regional Victoria’s auction hotspot, with nine – half of all auction sales there this year.

With such positive fundamentals, potential vendors should consider their next move.

Do your research. Check with local agents. Ask about their approach. Get appraisals from at least three competing agents. Use the REIV’s free Choose A Member service to find which local agents achieved the best results with properties like yours. Go to reiv.com.au.