13th June 2023 / Jeremy Desmier: Market Update | 10 & 11 June 2023

While the Australian winter may have brought on a freezing weather spell, Melbourne came alive this June long weekend celebrating both the 'Big Freeze' and another successful auction weekend.

In Fletchers news, all 8 of our properties listed for sale over the June long weekend were successfully sold, marking 100% success rate. Amid the latest increase in interest rates, the turnout at all the auctions was robust, with eager buyers lining up to participate. As we celebrate the success of our June long weekend sales, it's important to keep in mind that the housing market in Australia operates cyclically. Housing growth and decline can be influenced by various factors, many of which are beyond our control. For example, external shocks, access to credit and funding, migration, and imbalances between supply and demand can all impact the real estate market. Savvy investors and potential homebuyers should keep themselves apprised of changes that could affect their purchasing decisions. Of course, most people want to determine whether or not they should buy or sell now…or wait. Ultimately, it is best to think about property transactions in the long term – Domain economist Nicola Powell's advice is to transact where and when you can afford it. "Our research has shown that, over time, it's not when you get into, or buy and sell, in the market. It's less about timing and more about time spent in the market."

In terms of the rental market, results published in May via Domain this year saw vacancy rates for homes and units across Melbourne remain at 0.9% and 0.7%, respectively. This means that rents are likely to rise, placing upward pressure on renters. Although this presents a challenge in the short term, our potential owners may find they have promising opportunities in the current market.

Here are some highlights from our June long weekend sales:

At 18 Carrington Street Balwyn North, a four-bedroom home was sold for more than $200,000 over the reserve price. A total of 4 bidders participated in the auction, making for an exciting display of competition. A seamless campaign run by Jackie Chu and Mark Fletcher, saw the parkside property sell for a huge price under the hammer of $2,705,000. The result speaks to how a well-executed marketing strategy can attract a myriad of buyers who were prepared to stretch above the maximums for this blue chip offering.

Over in Bentleigh, 1/32 Vickery Street, an original home on a now-subdivided block drew in a huge crowd and saw ten bidders participate in the call, with the property eventually selling for $1,236,000 ($300,000 over the reserve price). The sale of this Californian dream house was a testament to how a perfect location and school zoning (in this case, McKinnon College) can drive up demand and attract strong buyer interest. Selling agent and auctioneer, David Jane, had never seen such a wholesome appetite for a property in this area.

Our newest office in Bundoora was thrilled to conduct their first auction in the area over the weekend. Marketed by Director Tim Yu, the five-bedroom home at 121 Betula Avenue boasts three living area, city views from the upstairs balcony and an enviable location close to RMIT, shops and schools. Auctioneer Sarah Lowry fielded bids from three parties, with the home ultimately selling for $1,312,000.

The current market is seeing a high demand for quality properties, as evidenced by the healthy crowds and amount of interest at each of our homes. Even as we deep dive into the winter months, we anticipate the market to remain strong due to the aforementioned imbalance between supply and demand. With the right real estate professional to guide you, you too can achieve your property goals!

Connect with your local Fletchers agent HERE.