According to property analysts and estate lawyers in Melbourne, homeowners are going to face challenges in the coming months because of major changes in the real estate market specifically how this is a good time for home buyers. All local real estate agents are also in agreement with this prediction. Many sellers are already worried because of the buyer pool, which continues to withdraw, the prices are going down and the clearance rates are also decreasing.
All over Melbourne, the sellers are starting to reduce the prices of their houses including units. The rate for the past half a year starting at the end of last year has already reached 5.3 per cent for houses while for units it is 6 per cent. The figures were revealed by Nicola Powell who is the chief data scientist of Domain Group.
It is noted though that the rate of the discount is not the lowest in the record for the past few years. The average has already been reduced because of the usual strong side of the real estate market within the inner part of the city. On the other hand, properties located at the edge of the city remains to be selling faster without much marketing challenges.
Dr. Powell added that the properties in the inner areas before have already reached the highest level where a discount can be awarded. The vendors located within those areas are willing to negotiate with prices that are deemed to be lower compared to the asking price in order to maintain the market dynamics.
One of the sellers in the area is Philip Adam with a property located in Elwood. It has four bedrooms and he was thinking to be able to sell it between $1.95 million and $2,145,000 during the auction. Despite many expressing interest when posted online, there are very little bids during the auction.
He added the spending power in Melbourne is not as it used to be and there are major changes seen. He thinks that estate lawyers in Melbourne are right to say that the market has already hit the wall for now.