14th February 2023 / Jeremy Desmier: Market Update | 11 & 12 February 2023

This passing weekend saw Victoria's busiest auction schedule so far in 2023 and just as we predicted last week, we saw an influx of home buyers competing as they made their move to secure a new home before any future rate increases, in the wake of the Reserve Bank's recent decision.

Over 400 properties were recorded to have gone under the hammer, up from last week's 366, as many vendors schedule their auctions before the Easter break, early in April this year.

With an overall Victorian clearance rate of 71%, strategy still proves key with our group achieving a strong success rate 90%, well above the state's average.

Along the Peninsula, Director Josh Callaghan presided over the auction of 6 Godfrey Street in Blairgowrie, an original 1960s home being sold for the first time since its build in the mid 1960's. An above market result was achieved of $1,687,500 as a wave of emotions came over a multi-generation family whom parted ways with a lifetime of wonderful memories.

Across the bay in Queenscliffe, 13 Edgewater Close was sold privately by Director Charles Caldwell and fourth generation Fletchers family member Anna Fletcher for $1,810,00. With lots of media commentary surrounding the heat coming out of the peninsula, a Melbourne buyer snapped this home up as an escape from the city to beautiful Swan Bay.

A better than expected result was achieved with competitive bidding from 3 buyers at the auction of 25 Stroud Street, Balwyn. Fletchers OEC Jeremy Desmier sold the property under the hammer alongside Director Spring Chen in which they commented on how they're looking forward to finding homes for the 2-3 other families who were interested to buy on the day, however the competition skipped away from them before they could feature in the bidding.

This strong display of competition is indicative of the pent-up demand after unseasonably low stock levels throughout December and January, helping to place a floor under prices.

Quality properties in sought after locations (such as the Balwyn High Zone as above) are continuing to be big draw cards, with overseas migration returning on a more permanent basis.

The rental market continues to strengthen, with unprecedented growth is driven by low supply and high demand, creating a highly competitive environment for tenants. According to the Domain Group, 'there is no quick fix to ease the highly competitive rental market as there are many factors at play. Rising investor activity is needed, the build-to-rent sector advanced, additional rental assistance provided for low-income households, more social housing and help tenants transition to home owners'.

We're looking forward to some busy weeks ahead for the remainder of February and the start of the Autumn selling season. If we can assist you with any real estate matter, please don't hesitate to get in touch with your local Fletchers expert.