Game of Homes – Festive Season – Melbourne Real Estate Outlook 2016

‘With over 20 years real estate experience in Melbourne,

Master Advocates strength is our true personal focus to deliver excellence across independent

Buyers Advocacy and Property Management services.’

MA_logo_Registered_Reversed

We would like to take a moment to thank our clients, team and extended service providers related to the real estate services that we provide.

2015 has been a great year for real estate sales agents, buyers agents, property vendors and investors. Though this would not be achievable without the continued trust and support of our valued clients.

The property market was challenging for buyers at times throughout the year, especially buyers or investors who were entering the market for the first time without the financial security of substantial savings, deposit or able to challenge the competition who may be able to bid and leverage from equity in an existing property portfolio. These are some of the challenges buyers have faced during a strong and rising property market that has been 2015.

The month of December has already seen some calmness in the market and hope of a slight correction between vendors expectations and the value that buyers are anticipating or capable of paying for the desired property.  More than the expected amount of properties have passed in at auction in Melbourne during recent weeks leading up to the Festive Season. This has allowed our buyers agents and other buyers in the market to secure opportunities to purchase property at a reasonable price without inflated values and hype experienced with the demand and competition in recent months.

The combination of changes in Bank Interest Rates and borrowing criteria during the last quarter and the mindset of buyers beginning to shift toward a more calculated and conservative approach may bring forward a correction in early 2016 providing the motivation of vendors is high relating to securing a reasonable price. This could be a good opportunity for buyers to negotiate and purchase property in early January 2016 that have passed in during December and struggled to achieve what could be an unreasonable reserve price in the current market.

One would not expect inner city suburbs of Melbourne to decrease dramatically, though a correction could be that prices and demand settle and remain consistent and reasonable for several months.

In this issue:

REIV Victorian Market Wrap – Enzo Raimondo CEO – REIV

reiv

LATEST SALES & AUCTION RESULTS – MONDAY 14 DECEMBER – SATURDAY 19 DECEMBER

A clearance rate of 70 per cent was recorded this week compared to 67 per cent last week and 64 per cent this week last year. There were 633 auctions reported to the REIV today, with 443 selling and 190 being passed in, 68 of those on a vendor bid. This year has seen the strongest auction market ever, with a record 44,000 auctions held. The auction market will now take a break, with the next big auction weekend scheduled for late January.

Top 5 Houses
6 Newbay Cr BRIGHTON $2,900,000
21 Ruby St BALWYN $2,746,800
27 Fermanagh Rd CAMBERWELL $2,500,000
26A Francis Cr GLEN IRIS $1,877,000
4 Victoria Av GLEN WAVERLEY $1,860,000
Top 5 Bargain Houses
127 Cox Rd NORLANE $165,000
7 Robertson St THOMSON $206,000
19 Station St NORLANE $218,000
14 Aquila Gr ROXBURGH PARK $295,000
3 Meadowbank La CRAIGIEBURN $305,000

 

Following the December 2015 Reserve Bank meeting, the cash rate was left at its record low of 2.0 per cent. Economic growth was stronger
than expected in the September Quarter, although annual growth continues to remain below RBA projections of 2.75 per cent. Inflation
is expected to rest within its target range over the next few years, however it is forecast to remain low over 2016. Given current and future
conditions, interest rates are expected to remain at record lows through 2016, with a potential rate cut (depending on the broader economic
outlook).
CEO – REIV
Enzo Raimondo

Core Logic RP Data Australian Market Overview – Tim Lawless – Head of Research

 Buyers Advocacy ■ Vendors Advocacy ■ Property Management

Buyers Advocacy ■ Vendors Advocacy ■ Property Management

 

According to Core Logic RP Data Home Value Index, dwelling values have fallen across five of the eight capital cities in Australia over the last month. In the remaining three cities (Adelaide, Brisbane and Perth), values rose slightly. Melbourne values fell the most with a 3.5 per cent drop.

According to Core Logic RP Data head of research Tim Lawless, a number of factors have led to these results. Mr Lawless said, “The fact that mortgage rates have risen independently of the cash rate has, in all likelihood, become a contributor to the slowdown in housing market conditions, as well as tighter lending practices”.

Read more here

 

 

 

 

Mortgage Market News:

 

Recent news reported by journalist Kate Jones for realestate.com.au seemed to be on track with the outcome of the December market and decision by the Reserve Bank to leave interest rates on hold.

‘Homeowners can expect interest rates to stay on hold until the New Year according to QIC chief economist Dr Matthew Peter.  This forecast is a result of current economic conditions being stable enough to leave rates untouched’.

Read more here

 

 

 

 

Investment News – ‘sharp fall away in investor related housing demand’

 

According to a CoreLogic RP Data media release, Australian Authorised Deposit-taking Institutions (ADIs) started to make changes mid way through this year to their lending practices. These changes were targeted at lending conditions for investment purposes. As a result, there has been a substantial slowdown in investment lending.

These changes have made it more difficult and expensive for investors to obtain finance. In addition, other factors such as ‘higher mortgage rates, low rental yields and a mature housing cycle are also likely to have contributed to the slowdown in investment activity’.

Read more here

 

 

 

 

Maximise Your Money – Verse Wealth

Houses

 

Verse Wealth recommends the following 7 tips to maximize your money:

 

  1. Select an appropriate super fund to invest your money to grow your nest egg in preparation for your eventual retirement.

 

  1. Consolidate multiple super accounts into one. This will provide you with greater control of how your super money is performing.

 

  1. Automate your saving and investing – Remove temptation, emotion and procrastination by setting up an automated transfer on pay day, of a certain portion of your employment income, into a nominated savings account.

 

  1. Bump up repayments – The more money you owe, the more interest you’ll pay.

 

  1. Take up a balance transfer – If you find yourself having trouble meeting your credit card repayments, a balance transfer can help you get some breathing space.

 

  1. Obtain commission-free insurance – Opt for financial advisers who operate on a ‘fee for service’ basis that will help you obtain the necessary insurances without commissions built into your policies.

 

  1. Set clear goals – This is a vital step to making better, well-directed financial decisions that will increase the likelihood of living the life you want.

 

*This information has kindly been provided by Verse Wealth.

 

Verse Wealth

03 8630 2814

Level 10, Tower 4, World Trade Centre

611 Flinders Street

Melbourne VIC 3005

 

 

 

 

Suburb Snapshot: Straight Outta Brunswick

Brunswick - imgp2404 sydney-road-street-party(1)-636x393

The following data is sourced from realestate.com.au.

 

Median Property Sale Price:

 

  • House 2 BR           $736,750.00
  • House 3 BR           $905,000.00

 

  • Unit 1 BR $351,000.00
  • Unit 2 BR $497,000.00
  • Unit 3 BR $735,000.00

 

Median Property Rental Price:

 

  • House 2 BR $335 PW
  • House 3 BR $380 PW
  • House 4 BR $450 PW

 

  • Unit 1 BR $470 PW
  • Unit 2 BR $600 PW
  • Unit 3 BR $748 PW

 

Lifestyles & People:

 

  • Established Couples & Families 11.0%
  • Independent Youth 30.1%
  • Maturing & Established Independence 20.1%

 

Features:

 

  • Dynamic area with a palpable energy brought to it by a recent influx of young, artsy, independents digging the multicultural scene
  • Close proximity to CBD (5km), train station & tram lines
  • Variety of sports clubs, cafes, restaurants and bars

 

 

 

 

Master Advocates – End of Year Closure Period – Festive Season 2015/2016

From the team at Master Advocates,

Thank you to our clients, followers, team and extended service providers for your continued support throughout this year. We hope 2016 is filled with joy and prosperity for you and your family.

 

Please be advised our office will be closing on Thursday 24 December at 12:00pm and will re-open on Tuesday 5 January 2016 at 9:00am.

 

Wishing you and your family a very safe Festive Season, Merry Christmas and a Happy New Year!


MA_logo_Registered

 

Supportive information sources: REIV, Core Logic RP Data, RealEstate.com.au, Verse Wealth in association with Master Advocates – Real Estate Services – published December 2015

Start typing and press Enter to search