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

Due to the Labour day holiday in Victoria, only 272 homes were put under the hammer, with a state-wide clearance rate of 70% being achieved.

At its monthly meeting last Tuesday, the RBA board lifted the official cash rate by 25 basis points to 3.6% – its highest level since June 2012 and the 10th consecutive increase since last May.

PropTrack senior economist Ms Eleanor Creagh is predicting that 'although we're probably going to see another rise next month, it may be the final hike Australians will see for a while with the RBA board likely to pause after April to see the impacts of it's aggressive approach flow through'.

In more property news, CoreLogic this week released a recent report on how the housing market has evolved in the three years since Covid was declared a global pandemic. It found that:

National housing values are 14.8% higher than where they were in March 2020

Despite the recent volatility, home values remain 14.8% higher overall.

The preference for houses over units is easing

Through the height of lockdowns, purchase preferences seemed geared towards houses. This was likely a combination of investor activity being relatively low, and homebuyers wanting more space. While the data indicates a slight rebalancing in preference back towards units, the premium on houses is still much higher than where it was at the onset of the pandemic.

The rental market has been rocked by the pandemic.

The rental market has arguably sustained the most significant and lasting change from the pandemic. With net inflows of overseas migration expected to return to pre-pandemic levels this year, and a rental vacancy rate of just 1.0% in February, there is no indication of rents going backwards nationally.

Cumulative growth in rent values since the onset of the pandemic nationally is 23.1%. This is likely to have come as a shock to long-term renters, where annual growth in rent values averaged just 2.1% nationally throughout the 2010s.

You can download the full report here.

In Fletchers news. . .

Mark Roberts and the team at Fletchers Banyule fielded bids from five parties at the auction of 6 Timaru Court in South Morang. Close to parklands, transport and shops, the spacious home offered a lifestyle location perfect for families!

Offering an entry-point into the highly sought-after Hawthorn lifestyle, the smartly renovated two-bedroom home had a strong marketing campaign, attracting several first-home buyers. The property was passed in to the highest bidder and a result negotiated by agent Brooke Warwick.

Director Spring Chen had an outstanding result pre-auction at 35 Pembroke Street, Surrey Hills, highlighting the desire for fully renovated homes requiring little to no work. Having the convenience of schools, shops, parkland and public transport at your doorstep, this property provided an unparalleled opportunity into a highly coveted urban lifestyle.

We look forward to a very busy few weeks in the lead up to the Easter break and wait to see what will come of the significant increase in listings.

If you are thinking of entering the property market, whether that be to buy, sell or rent, our team are ready to assist you, so please contact us today!