As widely expected the Reserve Bank has decided to keep interest rates on hold once again. This is welcome news to property owners who have seen the property market consolidate over the past few months. While there was a break in auction activity for the Easter holiday the strong results we were experiencing in February and March look likely to continue into April and May. All the fundamentals that inspire confidence in the property market; low interest rates, a strong share market and low unemployment rates, are in place. The high number of bidders at many auctions is a sign that there is still a shortage of good quality properties on the market.

Analysis of the results for the first quarter of 2013 have shown that the recovery in the property market is more pronounced in the inner suburbs of Melbourne than in the growth corridors. However RP Data has reported an overall increase in Melbourne house prices for the March quarter of 2.5 per cent. The number of people bidding at most auctions also highlighted the depth of buyers in the market and the shortage of supply to meet that demand. Marshall White One sold twenty-five properties in March, with four sales negotiated off-market in the past seven days. To find out how you can make the most of current market sentiment, contact us on 9822 9999.

Marshall White One vendors again enjoyed a 100 per cent clearance rate on the weekend with all properties attracting multiple bidders at auction. Among our auction highlights was a two bedroom villa in Severn Street, Balwyn North fiercely contested by five parties before selling under the hammer for $605,000 whilst a further three bidders competed for a modern two bedroom apartment on Riversdale Road, Camberwell. With the holidays now behind us, auction volumes are increasing for the remainder of April and then into May. Confidence has been given another boost be the release of the REIV quarterly March figures the show a 5.1 per cent growth in the median house price which is the strongest first quarter result in more than 10 years. The market is now evenly balanced which provides excellent opportunities for people both downsizing and upscaling.

Confidence in Melbourne's property market is continuing to steadily build with clearance rates remaining solid. Demand for the limited stock of properties on the market will only continue to strengthen now that Victoria's population has begun to rise, once again, to levels last seen three years ago. Marshall White One vendors enjoyed a 100% auction success rate on the weekend either at or before auction with most being contested by multiple bidders. Quality properties in all the leafy suburbs are in high demand as there is still a shortage. Even with the increase in auction volumes over the next two weeks there is still a long way to go for supply to meet demand.

The Marshall White group has recently launched a specialist projects marketing division, Marshall White Projects. The expertise of the two directors Mark Dayman and Leonard Teplin in both residential and development sales and marketing offers a unique advantage when selling off the plan apartments. They have a clear understanding of the different process's and languages used by both markets and they are also proactive with access to a vast network of ready and willing buyers unlike traditional off the plan marketers who wait for buyers to contact them. Marshall White Projects offers to our developer clients the experience of a team that is now literally moving hundreds of apartments and townhouses “off plan” per year, including selling development sites from acreage to permits for over 200 apartments.

A number of reports released last week all conclude that the property market is in the midst of a recovery. According to the Australian Property Monitors the housing market has had the best start to the year since 2010. Melbourne in particular posted the highest rise in the median house price (3.6 %) of all the capital cities. The eastern suburbs have performed particularly well at auction with Hawthorn recording an 80% clearance rate to date.

Despite many people taking the opportunity of Anzac Day on Thursday to make a long weekend, buyers turned out in vast numbers to auctions scheduled for the weekend. Among the highlights was the auction of a two bedroom apartment in Darryl Jackson's iconic 1970s 'City Edge' in Napier Street, South Melbourne. Four bidders competed for the property before it sold for $668,000 - setting a new record price for the much sought after complex.

Momentum is continuing to build in Melbourne's property market with large numbers of buyers turning out at the majority of auctions held on the weekend. Marshall White One vendors enjoyed a 100% auction success rate on Saturday, with most auctions being contested by multiple bidders. Demand is growing as confidence in residential property is being restored. While prices are growing moderately, vendors do need to have realistic price expectations.

Interest rates are now at a 53 year low after the Reserve Bank board decided to cut the official cash rate to 2.75 per cent when they met on Tuesday. It was the first cut in interest rates since December last year and it means rates have fallen 2 per cent since November 2011. This latest cut to rates will provide further stimulus to the already improving housing market.

Results at the first auctions held since the Reserve Bank board reduced the cash rate to 2.75 per cent produced very strong results. Buyers were given an additional boost when all the major banks immediately cut their rates by at least the full 0.25 per cent. With a 100% success rate at auction, Marshall White One recorded some very pleasing results for vendors. Once again buyers came out in large numbers at most auctions, with a crowd of over 150 people watching six bidders fight it out for a two bedroom villa in Waterloo Street - one of Camberwell's best streets. With interest rates at historic lows investors are returning to the market to compete with the first home buyers but the same low interest rates also present a great opportunity for existing home owners to upgrade.