It was a mere six months ago that the real estate market hit a two-year low. But that’s now but a distant memory, as just six months later, the sector has recorded its fastest property price gain in over a decade.
According to recent CoreLogic statistics, Melbourne house prices have jumped by 2.3% this October – the largest month-on-month gain since November 2009! The main reasons for this spike have been lower mortgage rates and an improved access to lines of credit.
The added impact of low listing levels
Right now, we’re also experiencing a shortage of new properties coming onto the market. The buyers are there and ready to spend, but they have limited options.
If you’re thinking of selling, this is great news, and our recent auction is one of the best examples why.
The auction took place at 15 Hansworth Street in Mulgrave. It involved an original 50 year old property situated on a 660m2 corner block. On auction day, we had six bidders but interestingly, only two of them had inspected the house previously. The remaining four simply turned up after missing out on other auctions that same weekend.
The auction started at a gentle level of $700,000 and quickly surpassed the reserve at $800,000. It then continued all the way up to $944,000; a whopping $144,000 over the reserve. In the process, it set a suburb record as the highest selling price per square metre i.e. $1,430/m2. The suburb averages $1,250/m2.
A great time for sellers
This auction example is not a rare occurrence. More and more, we’re seeing potential buyers who have never inspected the property previously attend our auctions, and bid competitively.
If you’ve been sitting on the fence about selling, we encourage you to take full advantage of the market’s current low stock levels. With Christmas fast approaching, we often see a flood of properties to the market, so beat the crowds and get your property ready to sell pronto.
Should you need some further assistance getting your home sale-ready quickly, please let us know by calling our office on 03 9562 2090. We’d love to offer you our years of experience in the real estate sector to ensure you get a sale price you love.