12th June 2020 / Beth Oleyar: Victoria’s Property Market Bounces Back with Increased Buyer Activity & Consumer Sentiment

Australia's accelerated road to recovery from the COVID-19 epidemic has welcomed a rise in consumer confidence, as state and federal governments commit to ensuring a COVIDSafe society for the second half of the year.

The Melbourne Institute and Westpac Bank Index of consumer sentiment climbed for its second straight month in June by 6.3%, a further increase from the previous month, when it jumped by a record-breaking 16.4% as restrictions first began to ease.

Buoyed by the country's success in bringing the COVID-19 pandemic under control, Westpac Chief Economist, Bill Evans, said 'consumer confidence is now back around pre-COVID levels, having recovered all of the extreme 20% drop seen when the pandemic exploded in March - April.'

Victoria's property market has also weathered the storm, with REIV President, Leah Calnan, confirming that property prices still remain higher than they were 12 months ago.

'The Victorian property market continues to show strong resilience. We expect the market to soon start gaining the momentum it lost due to the pandemic,' Ms Calnan said.

Additionally, the monthly rental data from the REIV has shown that 'median rents for houses are now more affordable at $470 per week, down from February's $480 per week, but still higher than the same time last year'.

Although vacancy rates have had some improvement at 2.3%, Victoria needs vacancy rates to sit between 3-4% for a healthy market.

In response, Ms Calnan, said 'Victoria's rental accommodation supply is growing, more rental homes are now available but there remains a huge need for properties to be listed to cater to growing demand'.

Interestingly, the latest data from CoreLogic has revealed a rise in new listings and property sales across Australia in May, with a 22.4% increase in new residential listings on the previous 28-day period.

Despite the challenging environment, it has been remarkable to see such a strong rebound in buyer activity and recent sales transactions.

Last month, Fletchers multi-award winning website recorded a 20% increase in buyer activity, with our agents also reporting a significant resurgence in attendance at auctions and open homes, whilst adhering to current restrictions. For the same period between April and May, Fletchers also reported a 17% increase in property transactions.

With restrictions easing and buyer demand now at record levels, these figures highlight a unique opportunity for vendors to take advantage of the low supply of property in the market and achieve a great sales result.

For those who remain uncertain about selling in the cooler months, this year's Spring selling season is expected to provide a considerable boost to the market, with expectations that the economy will be back up and running by September.

Coupled with record-low interest rates at 0.25%, significant increases in buyer search data and improved consumer sentiment, we expect Melbourne's property market to continue to swing back into action for the remainder of the year.

Although it has been a challenging year for many, we are proud to continue serving our clients and local communities in these uncertain times.

As always, we encourage you to keep up-to-date on the market, wherever possible. If you would like a price estimate on your home, please get in touch with your local Fletchers agent to discuss.

Alternatively, you can visit fletchers.net.au/request-property-appraisal