Corelogic Melbourne Property Market Update March 2020
The Reserve Bank cut interest rates this week to 0.50% with all big four banks passing on the cut quickly.
RBA governor Dr Philip Lowe said coronavirus is having a significant effect on education and travel.
“The uncertainty that it is creating is also likely to affect domestic spending,: said Dr Lowe.
“As a result, GDP growth in the March quarter is likely to be noticeably weaker than earlier expected.”
Dr Lowe noted “further signs of a pick-up in established housing markets” and said home prices are “rising in most markets, in some cases quite strongly.”
“Mortgage loan commitments have also picked up, although demand for credit by investors remains subdued.”
“Mortgage rates are at record lows and there is strong competition for borrowers of high credit quality.”
Melbourne Auction results show booming summer market
There was a massive number of auctions held in Melbourne on Saturday, indicating a strong demand for Melbourne homes. Despite the large numbers of properties going to auction, clearance rates were up on the numbers from last year. Melbourne property process are recovering.
There were 1380 residential property auctions held in Melbourne on Saturday 29 February 2020 with 73% producing a sale, up from 55% on the same weekend last year. The median price for properties sold was $876,000, reported Domain in preliminary results.
Tenants get more rights under new Victorian laws
From 1 March 2020, tenants are allowed under Victorian law to keep a pet in their rental property, with written consent from their landlord or rental provider.
The new rules around pets are part of a package of 130 new rental reforms that will be introduced by 1 July 2020.
A tenant requesting approval for a pet will need to complete a consent form from the Consumer Affairs Victoria website.
If a landlord wants to refuse the request they seek an order from the Victorian Civil and Administrative tribunal to refuse the pet.
The Victorian Minister for Consumer Affairs, Gaming and Liquor Regulation Marlene Kairouz said the new laws form part of the biggest change to the Residential Tenancies Act since it was implemented more than two decades ago.
Melbourne is Australia’s second city in terms of population and Australia’s second most expensive capital city property market, after Sydney. Anyone planning to buy there may be wondering what the Melbourne property market is shaping up to look like in 2020.
Melbourne property downturn is easing
Property prices across the nation were looking somewhat downcast in 2019, but the rate of fall seems to be slowing and there’s some hope for an upturn.
Two things in 2019 have sowed the seeds of this growth – the Reserve Bank cutting interest rates and lenders cutting home loan eligibility rules, like buffer rates.
Q3 2019 data from CoreLogic and Moody’s predicts Melbourne home prices growing by 0.2 per cent, after seeing no positive growth since the middle of 2017.
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