Welcome to the property market update for Melbourne’s Inner North, Winter 2019. As is the common theme for most of metropolitan Melbourne, in the Inner North suburbs such as Fitzroy through to Coburg, the property market has experienced decreased stock levels this winter which has translated to a lower number of sales and marginal price movements.
As always the prices do go up in winter due to low volumes of stock, but this year it has been more noticeable due to an even lower level of stock than previous years. Clearance rates are, however, on the whole mostly increasing to a healthy figure around the 80-85% mark. What we are seeing, however, is that agents are only taking the better properties to auction and with lack of stock buyers are competing heavily with multiple bidders, sometimes 5 or 6 fighting it out.
The positive impact on sentiment from the election result and the two recent interest rate cuts has seen an increase in buyers at open for inspections. What we are seeing is buoyed confidence by buyers on low stock levels, which isn’t necessarily a sustainable trend. With more and more properties now going to auction, the days on market sits around the 31 days, however, it is interesting to note that properties that have been sitting there over 120 days are also now selling, well below the optimistic asking price as vendors are having to “meet the market”.
As mentioned, the listing volumes are significantly lower than in previous years, and there’s a lot of B-grade quality stock and a lot of apartments on the market also. The properties that are A-grade quality are the ones going to auction and selling well, albeit in smaller volumes than what we’d like to see.
Northcote is the hottest market in the Inner North right now as very little stock is available and buyer demand is on the rise for the eclectic suburb with a mix of young families and teenage families looking for the big home with good public schools on offer.
A couple of notable sales I would like to point your attention to are:
Brunswick: https://www.realestate.com.au/sold/property-house-vic-brunswick-131352678 – 3 Frederick St, Brunswick, 3 bedroom small double front on 340sqm sold for $1,405,000 – a very solid result.
Northcote: https://www.realestate.com.au/sold/property-house-vic-northcote-131129626 – a new record for Northcote at 18 Henry St, Northcote. A beautiful 4 bedroom home with a pool, for $4,465,000 for a new architecturally designed home.
In speaking to agents, not a lot appears to be coming on so we will see further pressure on prices as demand is still high, this combined with lower interest rates and buyers having a bit more borrowing power should see a further increase of A-grade quality properties in the spring market.
If you are looking to upgrade your home in Melbourne’s Inner North property market, please get in touch for a confidential no-obligation chat.
