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A Buoyant First Quarter

PPG_Blog_April_image 2_market update

The 2013 real estate market has launched with the same upward trend that we experienced towards the end of last year. As reported by the REIV, the industry is recording both an increase in clearance rates and listings. Most experts believe this is a situation that reflects the improved confidence of Victorian consumers.

From the perspective of listings, buyers are being offered greater choice with a 20% increase in the number of auctions as compared to the last 10-year average. On 22 and 23 March the market experienced the 9th largest weekend ever with 1,140 auctions.

Clearance rates have also improved. February saw the highest monthly clearance rate since May 2010 with 70% of homes offered at auction selling.

The key to this trend being maintained is continued confidence. Whilst consumer confidence – partly driven by low interest rates and lower prices – remains healthier than a year ago the auction market should remain strong. Global economics and overseas events have had little negative impact so far.

From an overall perspective the local market is moving from the very busy summer and early autumn market to the winter one. The winter auction market is typified by lower volumes but not necessarily one with a lower clearance rate. This weekend the REIV is expecting around 560 auctions. Next weekend the REIV anticipates about 620 auctions. Median house prices for the first quarter of 2013 are due to be released in the nest week or two and will further highlight the market’s position.

(Figures sourced from the REIV)

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