As much as Melburnians love their sport, this obsession is not limited to athletic pursuits.
Under Glenn Stevens, the former Reserve Bank Governor, interest-ratewatching became a national spectator sport on the first Tuesday of every month.
Over the past few years, and in particular the past 12 months, this pastime has gravitated to propertywatching with particular focus on median house prices and auction clearance rates.
Newspaper headlines have screamed that the property bubble has burst and it’s only going to get worse. We have seen predictions of the median house price falling by up to 20 per cent by 2020. Shock horror!
Throughout this period of low market confidence, the Real Estate Institute of Victoria (REIV) has consistently maintained that the last 12 months have seen a market correction.
The correction we had to have, if you will, following years of massive house price growth which would have priced out a generation of young people had it continued its upward trajectory at similar rates.
We predicted median house prices would fall slightly (they fell by 0.6 per cent in Metropolitan Melbourne during the year to March 31, while in Regional Victoria it increased by 5.2 per cent) and clearance rates would remain low but we would start to see the market pick up again after the Federal Election.
Lo and behold, now all those “experts” who predicted Armageddon are moderating their outlook based, partly, on the Valuer General’s data which, like ours, is based on actual sales.
We have also seen auction clearance rates across Victoria pick up to their highest levels in 12 months, sitting above 60 per cent every weekend since the federal election.
The property industry is bombarded with data from one source or another every week. The REIV is unashamedly the most credible and accurate source because it is based on actual sales, not assumptions or manipulations, and we get it directly from our valued members and cross-check it with the Valuer-General’s records.
And it’s not just median house price data, each week, we collect 95 per cent of auction results and we are also the only body that collects and reports rental vacancy rates.
To find out more about the property market in your area, go to reiv.com.au/market-insights.