Winter is here and with that, a break in momentum is inevitable as many of our clients and their families head to warmer climes to enjoy a brief respite from Melbourne’s cool weather. However, the break is not absolute; many negotiations will be ongoing and finalised even if from afar. New listings for late winter and early spring will be being prepared (we encourage contacting your favourite Marshall White agent now in order to lock in preferred timing). We can all take stock on what has been a mixed Summer/Autumn market and try to establish where the opportunities lie in the next 6 months.
The market has definitely cooled – of that there is no question. But what does that really mean? In many cases, sales are taking a week or two longer than this time last year. If you put that into context with other major cities around the world, 6 weeks on market is exceptional. Have prices dropped? In the odd instance where circumstances dictate that a sale must occur even if the price is not premium then perhaps you could mount an argument for that, but by-and-large prices are holding firm with most vendors electing to hold out a little longer while buyers work out for themselves that there are no bargains. Perhaps the cream has come off the top, but the base is still solid. Less listings due to vendor sentiment will always tilt the supply/demand ratio in favour of maintaining strength in prices and, in a low interest rate market, there are no indicators of a falling market, more so one that has stabilised.