12th September 2022 / Jeremy Desmier: Market Update | 10 & 11 September 2022

Auction numbers over the weekend were up nationally, with 1,577 properties scheduled to go under the hammer. This represents a 3.4 per cent lift on the volume auctioned last week.

Despite the Reserve Bank of Australia continuing its inflation control measures with a fifth consecutive increase in the official cash rate, according to the Domain Group, auction activity if 26.7 per cent higher than the five-year average. An improving clearance rate shows that properties are still transaction, as buyers and sellers meet on price.

The sun came out at just the right time at the auction of 31 Wandsworth in Surrey Hills, as a large crowd of over 100 people looked on as six parties traded bids to secure the stunning Hamptons-style home. The custom-designed home was marketed by Director Daiman Kane and sold under the hammer by auctioneer Jeremy Desmier.

Beautifully renovated, the four-bedroom home at 92 Purches Street in Vermont offered families a stunning home within the Vermont Secondary College zone, and ready to move into. Three bidders participated in the auction, with the home being sold to a young family under the hammer for $1,307,000 by auctioneer Michael Gurry.

Offering renovation or development potential, the original condition four-bedroom home at 2 Tombolo Court in Mooroolbark attracted four bidders on auction day. Auctioneer Daniel Bolton sold the property under the hammer, with its quiet court location and potential proving to be key selling points.

Real Estate Institute of Victoria (REIV) President, Richard Simpson, said that homes suited to families, located in school zones, were still selling well.

As we move further into the Spring selling season, we expect to see auction numbers to continue to increase, except for a brief lull with a quieter weekend due to the AFL Grand Final. We have seen that despite the rises in interest rates, that initial shock has worn off and buyers are prepared to bid confidently for properties they see value in.

In other news, new data from the ABS shows that fixed rate lending has almost disappeared. In 12 months, fixed rate mortgages have gone from 45% of new lending to only 5.5% in July – the main change being higher interest rates. More borrowers are now choosing to take out variable rate loans than has been seen for some time.

As existing mortgage holders deal with higher interest rates, more are looking to save money by refinancing. Among owner-occupiers, the value of external refinancing increased by 13% between July 2021 and 2022, above the 8% rise for the market as a whole.

Results. It's a Fletchers thing.