Based on Reported Auction Results*

Buyer Demand Is Good, But Not As …  

The period in review has seen the Melbourne property market show its first signs of taking a breather in over two years. Demand from home buyers is still solid in our view, but some of the heat has dissipated. This can be attributed to several factors…

The first of these is a tightening by banks on lending to property investors; purchaser requirements are a little stricter now. Any limitations will have a braking effect on momentum from this sector. Second, the press and some forecasters have been speaking of a market due for a correction. The short term consequence of this on buyer sentiment, is predictable. Third, volumes of offerings in spring were high in number – a serious test for buyer numbers and depth…

Where do we see the market heading in 2016?

Our expectation is for the market to broadly maintain “fair to good” demand. This means prices roughly holding throughout the year. The key still remains interest rates in our view. Barring mishaps from “left field” events, continuing low rates and steady employment figures will keep the market buoyant. The press will find something else to write about and above average volumes will dry up too. There may be fewer investors active in the market place, but for those who do qualify, yields are pretty attractive in the current environment.

For those in the market to buy in 2016, happy house hunting.

… And to those new clients we assisted in 2015, many thanks once again for your custom!

From Renowden Buyers Advocates, we wish you a Merry Christmas and Happy and Safe New Year.

Contact Renowden Buyers Advocates for your next purchase.