November 2018 Market Review/REIV

Following the Reserve Bank meeting in December 2018, the cash rate was left unchanged at 1.5 per cent, as it has been since August 2016. The standard variable rate remained at 5.35 per cent.

There were 3,528 auctions held in November 2018. A total of 1,744 of these sold representing a clearance rate of 49.4 per cent for the month. So far there have been 35,742 auctions held in Victoria in 2018, with 61.8 per cent selling.

Victoria’s vacancy rate stands at 1.9 per cent in November 2018. The weekly median rent for houses in metropolitan Melbourne dropped slightly to $458 in November. In regional Victoria, the weekly median rent for houses remained at $330 per week. The weekly median rent for units rose five dollars to $425 per week in metropolitan Melbourne and fell ten dollars to $250 per week in regional Victoria.

In the four weeks to 16th December, the RMX fell by 2.8 per cent to 124.1. The House price index was down by 3.3 per cent to 120.2 in the weeks leading to 16th December. For units, the index has fallen by 8.0 per cent to 118.6 in the weeks leading to the 16th December.

There were an estimated 6,786 house and unit sales transacted in Victoria in November 2018, and about 117,006 sales in the past 12 months. Based on these estimates, the share of auctions sold as a percentage of overall sales was 21.4 per cent in the 12 months to November 2018.