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Interest in display homes has picked up from Victorian home hunters.
Prospective Victorian homebuyers attending open display properties has surged since the Reserve Bank slashed its cash rate for the first time in four years.
House hunters were out and about inspecting and bidding at auctions in droves on the first weekend since the Reserve Bank announced a 0.25 percentage point reduction in the nation’s cash rate, which underpins home loans costs, to 4.1 per cent.
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While it was still early days since the rate cut, Metricon sales and marketing general manager Drew Glascott said display traffic had surged with buyers regaining confidence in their borrowing power.
The Sentosa display home by Metricon from 2016.
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“Just this week, a young family who had been househunting with us last year but pivoted to apartment shopping due to affordability concerns, came back through our doors,” Mr Glascott said.
“Now, with the extra borrowing capacity, they’re close to depositing on their dream home — a home they thought was out of reach just months ago.”
He added that there was a renewed energy in the market with genuine inquiries up 20 per cent since last week.
“Families who were stuck renting or who had resigned themselves to apartment living are now looking to step into homes that truly fit their lifestyle and long-term goals,” he said.
“With demand likely to pick up, the smartest move is to act now before the market shifts again.”
The Ascot display home by Metricon from 2012.
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However, Barry Plant head of growth Mark Lynch said there hadn’t been a huge surge of demand in the auction market over the weekend since the rate drop, which was probably a good thing.
“I don’t think any of us really want to see the market jumping ahead,” Mr Lynch said.
“When you really analyse the rate cut, it’s not a huge amount of money.
“I think we definitely need to see at least another rate cut before things start to get a lot better.”
PropTrack data showed Melbourne’s clearance rate was 70.5 per cent with 679 homes sold on the weekend.
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sarah.petty@news.com.au
