Call Now: 1 300-645-327 
As advocates we get the unique opportunity of seeing the entire Melbourne market, and let me say it has been the toughest December I have seen in 8 years. Buyers are very reluctant to commit and sellers do not know what to do.
Some sellers have been on the market with 2-3 agents before they call us and so they are naturally distressed and concerned. Our first job as advocates is to find out what went wrong with the past campaign/s. Usually it comes down to 2 things. One is price the other is presentation.
Presentation – There are hundreds of helpful hints on the internet on how to present your property for sale eg.( Insert link). But one must be careful not to over capitalize or take too long getting it ready, as you may miss the market as one of our sellers did recently. Their home was valued by three agents last year in the mid to high 550’s and now is closer to 430-450k.
Price – It all starts and ends with price. Sellers want last year’s prices and Buyers feel it will drop more. From the USA, Europe to Queensland and beyond, property prices have dropped, so home owners in Melbourne should not be surprized that their properties are dropping too. It is simply part of a cycle that happens every 20 years. Yes ultimately prices will go up after 2020 according to my research. In the meantime sellers need to analyse why they are selling?
To change homes – This is the best time to change homes, IF you sell 1st then buy. In a dropping market with low interest rates you can sell now on a long settlement and look for the best home for you, either renting for 6-12mths in the short term. MBA has helped hundreds of happy sellers last year to sell, that are now buying way less than they would have earlier.
From Geelong to Portsea we see properties just sitting around. Agents taking December off just to keep their sanity. You can’t force buyers to buy in a market where interest rates are stable to dropping. There is no urgency.
Tuesday’s announcement of a 25 basis point reduction in interest rates, the second consecutive month of cuts, bringing the official cash rate to 4.25 per cent is good news.
The big banks were reluctant to pass on the reduced interest for 2 reasons. Share holder Profits and the fact that fixed home loan customers will now have more reason to change their fixed home loan and change over to variable loans.
Here is the chart that shows the time line of Real Estate market sales activity peaks and lows. You can see that interest rate levels are in direct opposition. I believe the Real Estate market cycles in 40 year peaks and lows. However interest rates are artificially low at the moment due to the government intervention.
