13th August 2024 / Jeremy Desmier: Market Update | 10 & 11 August 2024

We enjoyed a welcome sneak peek of Spring sunshine over the weekend as Melbourne hosted the highest number of auctions across the country, with approximately 844 homes going under the hammer. This was the biggest volume since the week ending 23 June when 920 auctions were held.

In Blackburn South, three bidders competed to secure the inviting family home at 191 Blackburn Road. Marketed by Spring Chen, the property is on a level block of approximately 546 sqm and was sold under the hammer by Auctioneer Ian van Eijk for $1,145,000.

In the prized Balwyn High School zone, the five-bedroom home at 4 Melba Court in Balwyn offers luxury cul-de-sac living. Within walking distance to parks, transport and shops, the home attracted three bidders and sold under the hammer.

Director Rob Sheahan fielded bids from three parties who were keen to secure the charming, single-story brick veneer home at 1A Hopetoun Street in Mitcham. The property sold under the hammer for $1,056,500.

The Reserve Bank of Australia (RBA) opted to keep interest rates on hold last week, at the same level they have been since November last year. Expectations are now that the next move from the RBA will be down, but the question on everyone's lips is - when will that be?

The RBA is an inflation-targeting central bank, meaning they adjust interest rates to encourage or slow economic activity and keep inflation low and stable. Their stated target is to keep inflation between 2% and 3% over the longer run. Inflation has been too high for some time now and while the RBA has raised interest rates to slow the economy, they have been tolerating above-target inflation to achieve a 'soft landing' for the economy. That's a landing that lowers inflation while preserving the strong job creation that we have had over the past few years.

The June quarterly inflation numbers confirmed that inflation is running almost exactly in-line with the RMA's May forecasts, causing markets to shift quickly to pricing in a full rate cut by February next year and two full cuts by the middle of next year. Major bank economists from Westpac and Commonwealth Bank expect a rate cut even sooner - in November this year. This would be welcome news to mortgage holders struggling through the highest interest rates since late 2011.

This weekend, there are just over 2,000 properties scheduled to go under the hammer across the country, as activity continues to pick up in the lead up to Spring. If you need any advice on a Spring sale for your own home or investment property, please give us a call.