The Melbourne housing market has seen the pace of capital gains slowed from the highs of last year.
This is evident in the hedonic index results as well as auction clearance rates, which have consistently been above 70%.
Inventory levels also remain exceptionally tight across the Melbourne market.
Melbourne’s quarterly rate of growth has slowed since peaking at 4.4% in November last year, however the most recent three month period has seen dwelling values rise by 1.9%, less than half the peak rate of growth but substantially higher than Sydney’s pace of capital gains.
Melbourne has proven surprisingly resilient, despite a continued slowing in investment and capital growth across the national markets.
It’s anticipated the market will continue to see changes in the months ahead, and it’s expected that the rate of growth will continue to slow throughout the remainder of 2017.
But for now Melbourne retains a strong seller’s market, and it will be interesting to see how the Spring auction season plays out across Melbourne and Sydney in the months ahead.
However the market seems to be more resilient compared with Sydney to slower conditions.
The peak rate of growth was in November last year where Melbourne dwelling values were rising at the quarterly pace of 3.4%.
Since then, value growth has remained strong but it’s eased back to 1.9% over the three months ending August 2017.
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