The strong upward trend in Victorian residential property value has been interrupted partly due to recent COVID-19 outbreaks and lockdowns. It is still expected to grow strongly, supported by robust demand and low interest rates.
The RMX (Residential Market Index) jumped by 3.7 per cent to 153.8 over the four weeks to 15th August, highest on record.
The House price index rose by 0.3 per cent to 157.6 over the period while the Unit index also increased by 3.0 per cent to 145.0.
There were 3,361 reported auctions in July 2021 with 2,833 of these sold representing a clearance rate of 84.3 per cent, which is also the highest number of auction sales for any July month. There were a total of 30,435 reported auctions in Victoria in the past 12 months, with a 83.1 per cent clearance rate.
Reservoir had the most auctions for the month, with 72 reported auctions, followed by Craigieburn (63) and Preston (53).
Reservoir also had the highest number of properties sold by auction (57), followed by Craigieburn with 54 auction sales.
Thirteen suburbs recorded 100 per cent clearance rates over the month (at least 10 listings), led by Greenvale and Hampton with 18 auctions each.
It should be noted that the REIV continues to receive results several weeks after the date of auction which may lead to revisions in auction data.
Properties in metro Melbourne spent 34 days on market, one day less than the previous month. For regional Victoria, the median days on market is 32 days, four days more than previous month.
Victoria’s vacancy rate fell to 4.7 per cent in July 2021.
The vacancy rate across metropolitan Melbourne fell again to 5.8 per cent over the month while the vacancy rate in regional Victoria remained at 1.2 per cent.
According to the RBA, the economic recovery in Australia is stronger than expected, however the recent outbreaks of the virus are interrupting the recovery and GDP is expected to decline in the September quarter.
Following the Reserve Bank meeting in August 2021, the cash rate remained unchanged at 0.1 per cent after a cut to historic lows in November 2020.
The total number of building approvals in June 2021 increased by 12.8 per cent compared to previous month in seasonally adjusted terms, with approximately 6,785 dwelling units approved. There were 67,767 dwelling units approved in the past 12 months to June 2021 for Victoria.
For more information on the real estate statistics in your part of Victoria please email Mel at mel.dennis@longview.com.au or call 0416 218 003 to discuss what this can mean to you.