Feed on

2012 in review

PPG_Blog_December_image 6_2012 in review

With the curtain now closing on another year in Melbourne property sales, the results indicate a market that is balanced and sound.

After 2011 finished with a grumble, the market mood from buyers and sellers was fairly sombre. This was still reflected in the general lack of quality homes on the market at the beginning of 2012 and a “bargain” buyer mind set. But while overall conservative economic conditions prevailed, the overall trend indicated a modest increase in market activity as the 12 months progressed.

The Real Estate Institute of Victoria reports the clearance rate has averaged 61% over the year, still lower than the 10-year average but 2% higher than last year. Weak consumer sentiment and a flagging Victorian economy are partly to blame as well as the persistent financial uncertainty felt right around the globe.

First home buyers responded positively to lower prices and historically low interest rates in 2012 with around 18% more entering the market than in 2011. And with stamp duty cuts increasing to 30% on 1 January 2013, conditions will remain favourable for them into the New Year.

REIV CEO Enzo Raimondo has said that 2012 is ending with the real estate market in a better position than it was a year ago and improved levels of affordability will ensure buyers continue to be well placed in 2013. “There are three reasons to be confident about prospects for the market in 2013: consumer confidence levels are above this time last year; the clearance rate is higher than this time last year; and overall prices have been stable,” he concluded.

The institute is expecting around 69,000 residential sales in Melbourne in 2013 with 23% sold by auction.

Share and Enjoy:
  • Print
  • Digg
  • StumbleUpon
  • del.icio.us
  • Facebook
  • Yahoo! Buzz
  • Twitter
  • Google Bookmarks

Leave a Reply