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Empower Wealth Blog post by Empower Wealth

State of the Property Market – Melbourne & Sydney

Congratulations to those holding property anywhere where the majority of sales are occurring via Auction, because your house or unit value is on the rise. Based on Property Market Activity its going to run pretty hard for the next 3 months, until interest rates increase from these record lows and market sentiment for property declines, but this is going to take a little time, even with a couple of interest rate increases.

Real Estate Institute of Victoria notes that stock levels are set to increase over the spring selling period.  Approx 600 auctions are scheduled for next week, then 775 within the next fortnight and 800 in three week’s time.

This past weekend (29/30 Aug) show huge demand with a clearance rate of 85% from a sales volume of 620 properties.

Quality properties in great locations are seeing prices above the 2007 boom levels and it’s hard to see this momentum stopping anytime soon, as demand is well and truly stripping supply in the current property market.  This is resulting in buyers with the deepest pockets, who are taking a long term view of historical prices, winning on the day.

The market is being supported by all players from First Home Buyers and the resurgence of the investor market.

The same story is playing out in Australia’s biggest property market – Sydney. Auction clearance rates are on the rise month on month since March 09.  Given Spring is the traditional season for increased stock in Sydney also, one can expect a lot of competition, as overall sentiment turns positive for a market that has been flat for several years.  Herron Todd White Property Valuers in their August ‘State of the Market’ indicators have both House and Unit status as ‘Rising Market’.

This is the time that those of us in both markets sit back and enjoy the fruits of our endeavours to build wealth.  For those thinking about getting into the market, it’s definitely worth taking a second look. Do your research and you will be rewarded handsomely over the long term, and right now, maybe over the short term as well.

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