St Kilda There were over 5,700 Auctions in the month of November, the highest in any given month. One week stood out – the week ending 29th of November 2015 which broke the national record for the highest number of properties going into Auction – a massive 1,749 Auctions.
November was a strong month for the housing market, in terms of transactions and price growth. The REIV House Price Index (HPI) for Melbourne rose by 1.4 per cent over November on the back of strong consumer confidence and subsequently higher Auction demand. House prices in Melbourne’s regional areas in November were mostly stable, with the exception of the Geelong region (up 0.6 per cent) which has continued to see strong growth over the year.
Strong buyer demand was reflected in the median number of days on market, where properties took a shorter time to sell. The median number of days on market for Metro Melbourne is currently at 35 days (as of November) – down three days from the same time last year and one day from October.
Following the December 2015 Reserve Bank meeting, the cash rate was left at its record low of 2.0 per cent. Economic growth was stronger than expected in the September Quarter, although annual growth continue to remain below RBA projections of 2.75 per cent. Inflation is expected to rest within its target range over the next few years, however it is forecast to remain low over 2016. Given current and future conditions, interest rates are expected to remain at record lows through 2016, with a potential rate cut (depending on the broader economic outlook).
