REIV Market Update May 2018
The REIV market update May 2018 has just been published. I’d like to share some of the top line information with you. For more detailed information don’t hesitate to get in touch.
REIV Market Update
“Following the Reserve Bank meeting in May 2018, the cash rate was left unchanged at 1.5 per cent, as it has been since August 2016. The standard variable rate stands at 5.2 per cent as it has since July 2017. There were 3,511 auctions held in April 2018. This is an average number of auctions for April, since Easter fell in April this year. A total of 2,352 of these sold representing a clearance rate of 67.0 per cent. There have been 12,031 auctions held in Victoria in 2018, with 68.7 per cent selling.
Victoria’s vacancy rate stands at 1.9 per cent in April 2018. The weekly median rent for houses in metropolitan Melbourne remained at $450 in April. In regional Victoria, the weekly median rent for houses rose by $5 to $315 per week in April. The weekly median rent for units remained at $420 per week in metropolitan Melbourne while the median rent for units in regional Victoria remained at $250 per week.
In the four weeks to 20th May, the RMX rose by 6.2 per cent to 176.5. House prices are up 2.7 per cent to 169.9 in the weeks leading to 20th May. For units, the index has risen by 1.5 per cent to 150.5 in the weeks leading to the 20th May and are now back to December 2017 levels.
There were an estimated 8,549 house and unit sales transacted in Victoria in April 2018, and about 131,426 sales in the past 12 months. Based on these estimates, the share of auctions sold as a percentage of overall sales was 24.6 per cent in the 12 months to April 2018.”
According to REIV Residential Market Indexes :-
the residential market has risen by 2.7% over the four weeks to May 20.
the clearance rate at auctions for April 2018 was 67%
there were 3,511 auctions held and 2352 properties sold by auction during April 2018
Average days on market in Melbourne was 34 days in April, four days more than in April 2017
the vacancy rate for residential investment properties is 2% and in regional Victoria is 1.7%
Personally, I think the market is very patchy at the moment with some properties selling well and others not. Finance is hard to secure and the banks are making it more difficult by the day. Investors are being switched from interest only to principle and interest loans affecting the cash flow of some investors.
If you would like more information on the current state of the Melbourne property market, just give us a call. Whether buying a home, selling or expanding your portfolio of investments Buyer Solutions can help.
by Janet Spencer
Buying property, Expatriate Aussies, First home buyers, Housing Affordability, Housing Market, Real Estate News & Opinion, REIV
+61 39816 8555