Peter Rogozik Property Consulting: Your Buyers Advocate - Connecting People and Property

Your Buyers Advocate News

Market Snapshot - May 2008

The Melbourne property market has returned to a more sensible and sustainable level of activity in 2008. Last year will go down in real estate history as experiencing the sharpest price rise in a year ever seen. The upward movement occurred between February and November. The upward price movement was excessive and hence so far this year we have experienced a slight downward correction. We are in my view now back to normal market conditions. Consecutive interest rate rises have certainly had their effect on the level of demand. Last year quality property was attracting 3 or 4 bidders, this year that number has been reduced to 1 or 2.

Over the previous few months every time the Reserve Bank has met to review interest rates they have decided on an increase. This has caused fear amongst the buying public. When is the upward movement going to end? At their most recent meeting they decided not to further increase rates. In my view we can expect moderate growth in the Melbourne property market this year. More buyers will appear when they are confident that the upward movement in interest rates has come to an end. Like all financial markets the property market is greatly affected by the confidence levels of buyers and sellers.

 

Return to the main news page

 

 

Related Pages:

No related articles