3rd June 2024 / Jeremy Desmier: Market Update | 1 & 2 June 2024

The first auction weekend of Winter brought the wind chill factor and another strong industry clearance rate of 65%, as reported by Domain.

We saw three bidders compete to secure the pretty three-bedroom plus study home at 35 Rowen Street in Glen Iris. In a highly sought-after neighbourhood, the property was sold under the hammer by Michael Rosano for $2,120,000.

In Blackburn, two bidders sought to win the keys for the generous two-bedroom, single-level home at 7/60-62 South Parade. Boasting a large lounge room, brand new appliances in the kitchen and a convenient location, auctioneer Ben Williams sold the property under the hammer or $750,000.

The conveniently located, exceptional family home at 11 Timberglades Drive in Bundoora attracted three bidders on auction day. In the sought-after Gresswell Grange Estate, the home was sold by the team at Fletchers Bundoora for $1,150,000.

In terms of the current market, we're seeing property-related taxes influence the market in Victoria, where impending land tax hikes set to begin next financial year prompting some landlords to sell rental homes to avoid them. A combination of increased lending costs, higher living costs and the expanded land taxes are proving too much for some investors.

Fletchers Director, Aaron Zhao, said that in the current market, prospective buyers have been showing most interest in well-located properties. "Luxury properties are still selling really well, but everything needs to be ready", he said.

Home buyers are in the market and looking to buy, but they are approaching the market carefully and are taking their time. Interest rates have dominated real estate markets nationally since rates started to rise in May 2022, with home buyers and sellers watching interest rate decisions intensely.

The PropTrack Home Price Index shows that national home prices lifted 0.30% to hit a new record in May, bringing prices up 2.73% year-to-date. Despite a rise in the number of homes for sale this year, strong population growth, tight rental markets, and home equity gains continue to bolster strong demand. Meanwhile, building activity remains challenged by capacity constraints and higher costs, with consequent tight housing supply pushing both prices and rents higher.

This imbalance between supply and demand has offset the higher interest rate environment and the impact of affordability constraints, with home prices continuing to lift.

This coming weekend will be quiet due to the King's Birthday long weekend, before the Winter property market resumes in earnest.