The Reserve Bank’s early April announcement that the official cash rate would once more be left on hold at 3% was widely expected. Despite ongoing problems overseas, hopes of further domestic rate cuts are dwindling, replaced instead by increasingly frequent expert predictions of rate rises later this year. With the average discounted variable loan rate now at 5.65%, the cost of borrowing money is at its lowest level in more than 50 years, except the during Global Financial Crisis.
According to the latest RP Data/Rismark Hedonic Home Value Index, capital city dwelling prices recorded their strongest quarterly lift in three years during the March quarter, rising 1.3% in March and 2.8% over the three months. Melbourne’s result was slightly below the average, recording a 0.8% rise in March coupled with quarterly growth of 2.5%. According to the data, Melbourne prices currently are currently just 6.2% lower than the peak levels recorded in 2010.
The results contradict the Reserve Bank’s recent well publicised and frank assessment of Melbourne’s housing market, which forecast further price falls ahead due to an oversupply in the new home and apartment markets. The Real Estate Institute of Victoria has said Melbourne is in the midst of a “mild recovery”, with healthy auction clearance rates and market activity driven by an increase in affordability of 20% over the past three years.
At the recent Ray White Annual Awards night, our office was proud to be awarded number eight office across Victoria and Tasmania, with our team also taking home the Business Achievement Award and Property Management Team of the Year Award. During 2012, a dedication to best practice and a focus on excellence in customer service culminated in exceptional results throughout the year.
While the market is clearly showing positive signs of improvement, a well targeted and executed marketing campaign is critical to achieve a satisfactory sale in the current environment.