Melbourne’s plunging property market has sellers spooked

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Homeowners are not even being tempted by the prospect of getting more attention from buyers looking for a bargain, so how will price falls unfold from here?

Across Australia, October was the slowest spring for new listings since October 2012, when the market was also in a downturn.It marks a contrast to a year ago when new listings nationally were at the highest levels ever after a lockdown-interrupted winter.“They’re only doing it if they need to – if there’s been a death, divorce, or they’re desperate to sell because they’ve lost their job.”While seller numbers plummeted, buyer interest rose in October.

“At the same time last year we were having 1500 auctions every weekend, but this year there’s only been one weekend where we’ve cracked 1000 auctions in October,” Grieve said.Buyers were hunting for newly built or renovated homes they could move into and enjoy, especially as building costs had blown out during the pandemic.Penny Stephens

Anna, a criminal lawyer, and Hayden, a barrister, are confident of a good sale despite the downturn after being advised their home was particularly sought-after. She said vendor numbers had fallen this year as many had listed and sold during COVID-19 to make lifestyle changes.

 

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The correction is painful and will take time to get used to, but it's high time we stopped viewing property as a wealth generation tool and instead viewed it for what it really is: a necessity.

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