Think carefully before using hard-earned equity from family home to fund a holiday home.
Melbourne Buyers: Hungrier than the Very Hungry Caterpillar
This is one Hungry Property Market
Richard Wakelin’s observations on the current market.
“The Hungry Caterpillar saved its biggest meal for Saturday. But the children’s favourite could learn a thing or two from Melbourne property buyers.
“This is one hungry property market. Faced with a mammoth meal of around 1700 auctions, buyers tucked into the supply, delivering an impressive 72% auction clearance rate.
“I had expected a slight dip – perhaps down to the high 60s – given Melbourne had never seen so many auctions in one day.
“This weekend’s result will have every market participant – buyers, sellers and agents – sitting up and re-assessing their view of the market in coming months. It will likely change the tone of the conversation. No longer is it about whether 2014 will peter out, as this market will motor now until the end of the year, but whether we can expect more of the same in 2015.
Taking advantage of the break
“Auctions go into a cocoon next weekend, as Melbourne turns its attention to the horses. But it won’t be a time to rest for prospective buyers, though. They will want to be ready for the restart and will be busy reviewing the new stock at open for inspections. They know competition is tough, so are aiming to identify two or three properties that meet their criteria. With plenty of supply coming onto the market, buyers have choices, which is a great predicament, even if they have to compete for it.
“Get their homework right, and hopefully they’ll emerge with a beautiful butterfly of a property in a few weeks.”