16th August 2019
The last couple of weeks have really seen the commencement of pre-spring Auctions in the Melbourne market, clearance rates were strong with 75% compared to this time last year of 62%, however there were less properties being auctioned with 452 compared with 651.
General feedback from the market from agents and buyers has been that they are seeing less stock available, so competition is high and attendances strong through property. The numbers therefore validating these statistics. 68 Properties sold prior to auction and 140 sold privately, buyers understanding again they need to act promptly to secure the home they want.
The last 12 months has had an impact on buyers through the mortgage lending process and the royal commission into the banking industry had repercussions with slowing the process down considerably. With so many financial institutions and lending options, it really can be daunting for anyone applying for a loan, more than ever using a loan broker to navigate the options and find a solution for your individual needs can really be beneficial. We can assist with referrals should you wish to chat to a few brokers for advice.
Interesting that just this week a world first with a Danish bank offering mortgages with a negative interest rate! Essentially this means that borrowers are paying back less than they owe. The Reserve Bank of Australia, made comments this week too, considering options to stimulate our economy.
- The Reserve Bank of Australia (RBA) has suggested it could be forced into “unconventional” methods of getting the Australian economy back on track.
- After slashing the official interest rate to 1% — its lowest level in Australian history — RBA governor Phillip Lowe told an economic parliamentary hearing that it could cut to zero or below if the economy doesn’t improve.
- Negative interest rates have previously only been implemented overseas. It forces individuals to spend and banks to lend, charging both interest otherwise.
So what does this mean for buying coastal property? Well we are still experiencing low stock levels and still many buyers seeking their perfect home, so we foresee a positive 6 months coming up. Our higher end price bracket still slow moving however with the majority of our buyers in the Anglesea – Torquay markets sitting under the $1 million price range. No doubt over the coming months based on market conditions in Melbourne we should see a ripple effect along the coast with positive activity.
From a local business perspective, there are some exciting changes coming up with ‘GROW’ great ocean road wellness taking on one of the retail spaces at 141 Great Ocean Road, they have a successful business operating at 3/11 Inverlochy street, Anglesea. This new business will further enhance their operation, whilst adding to our community. You can follow them on Instagram so you are updated on the progress of their opening: https://www.instagram.com/greatoceanroadwellness/
Also keep an eye on the site – 113 Great Ocean Road, (uber mama) which is also being revamped….
September school holidays and the surf coast century 100Km event is coming up soon (which we are proud sponsors of) so all round great things are happening on the coast. We look forward to assisting you in all areas of our business including; Sales – Residential and Commercial, Holiday Accommodation and Permanent Leasing.
Looking forward to seeing you at the open for inspections or private appointments. Have a wonderful warm weekend.
Ph: 0488 980 994
Ocean and river views, featuring a huge open plan living area, the 3 bedroom, 2 bathroom apartment is a must see for anyone looking for a low maintenance holiday home. Ticking all the boxes with a large entertaining deck, parking for 2 cars and a central location this apartment wont last long. Call Ben Jackson on 0437 380 706 to find out more…