Melbourne home market suffers the winter blues

Sales activity across the pricier homes within the Melbourne real estate arena has dropped quite significantly over the last couple of months and prices in this sector have been on the slide.

Three months ago residential homes valued at $1m plus were highly sought after, prices were rocketing and buyers were aplenty. Clearance rates topped 70 per cent around Easter on top end properties in some districts. April saw buyer activity tail off somewhat and during May prospective buyers at this level were few and far between. By the end of last month some areas had seen clearance rates drop down to 40 per cent.

Agents agree that the higher end of the price table is experiencing over supply and a shortage of purchasers and had expected this sector to slow as the pace had become unsustainable.

Other areas of the Melbourne real estate market, properties under the $1m price tag, are still enjoying a stong clearance rate and show no signs of faltering.