4th July 2023 / Jeremy Desmier: Market Update | 1 & 2 July 2023

Have you ever been to an auction in Melbourne? If so, you know how electric it can get when several buyers and sellers are vying for the same property. This past weekend, Melbourne's weather seemed to add to the chaos by forcing most auctions indoors. Despite the weather conditions, buyers didn't mind coming out to purchase their dream homes. Across the Fletchers Group, auction clearance rates stood at an impressive 91%. This result was ahead of the state's recorded average of 73%. Even though only 383 auctions were reported across Victoria, we've witnessed a slow but steady increase in listing numbers for May and June.

As winter well and truly sets in, buyers are eagerly looking forward to the upcoming Spring market. The Reserve Bank of Australia (RBA) is meeting today to decide whether another rate rise is again needed. The stop-start cycle of these rate increases is one of the significant challenges faced by buyers and sellers in the current property market. Buyers who want to take advantage of low rates may be wondering if they should buy now or wait for rates to decline, which could lead to increased house prices.

At Fletchers, understand the importance of providing certainty to our clients, especially when it comes to financial decisions. The market has a lot of questions about what to expect, such as will interest rates go up, will house prices continue to rise, and how much can they spend now versus 3 months' time? We always advocate that our clients speak to their financial advisor or broker to assess their buying power and what they can realistically afford. With so many balls in play, getting expert advice before making significant financial decisions is more critical now than ever.

One thing that's becoming clear in Melbourne's property market is that migration is continuing to surge. When we look in the rear-view mirror, we can see that previous migrations resulted in significant price increases. The influx of migration leads to increased demand, and as a result, prices will rise. Therefore, it's essential for buyers and sellers to keep an eye on the migration trends to anticipate future demand in the real estate market.

Melbourne remains a highly sought-after location for both local and international buyers. The city's vibrant culture, excellent schools, and world-class amenities are just a few reasons why people want to live here.

Across our network, one factor is standing out: school zones. These highly sought-after areas are what's driving up property prices and creating intense competition among buyers. Not only in the heart of Melbourne, but also on both Peninsulas, families and individuals are seeking homes near renowned schools for a beautiful living environment and access to high-quality education. The demand for properties in these coveted school catchment areas is skyrocketing, as people recognize the long-term benefits and value they provide.

Over the weekend...

An impressive 6 bidders competed for a chance to own the immaculately presented home at 25 Bellevue Avenue in Burwood East. Managing agent Michelle Yan said the home was called on the market at $1,100,000 later selling for $400,000 more! Proximity to excellent schools as well as Deakin University saw the bidding action hotly contested on the weekend.

Over in North-East, 6 Lambruk Court in Yallambie also fielded significant interest throughout its campaign with another 6 bidders competing at auction on Saturday. Director Greg Taylor said their office has seen a huge push in buyers coming across from Balwyn and Bulleen, in search of pockets that circled around Viewbank Secondary as well as easy access to Ivanhoe Grammar.

Location and opportunity were the clear drawcards at the auction of 17 Longmuir Road in Watsonia, marketed by Tim Yu and the Fletchers Bundoora team. Five bidders competed indoors for the chance to secure the potential to renovate or redevelop the 600sqm block.

In Hawthorn East, 1/31 Havelock Road sold under the hammer for $1,218,000. Auctioned by Mark Fletcher, the property boasted majestic Art Deco features, stylish living rooms and an enviable location just metres from Camberwell Junction.

Whether you're keeping a close eye on the market or on the brink of entering it, we have the expertise and resources to guide you through these changes and help you achieve your property goals. With our proven track record and commitment to client satisfaction, confidence is our currency. Don't miss out on this opportunity – let us be your compass in a changing market.