13th November 2023 / Jeremy Desmier: Market Update | 11 & 12 November 2023

Auction activity was back after a quiet weekend due to the Melbourne Cup unofficial long weekend, although we did pause at 11am to observe a moment of silence for those who died in wars and conflict for Remembrance Day.

A rise in new property listings in October has left buyers with more choices ahead of the holiday season, as many look to secure a home before the end of the year. Across the combined capitals, new listings surged to a 17-month high last month after experiencing a dip in September, according to Domain data. Domain chief of research and economics, Dr Nicola Powell, said that it showcases that we're in the "peak selling season".

Over the weekend, we saw competitive bidding at the auction of the extra large, four-bedroom home at 6 Duke Street in Ashburton. Auctioneer Michael Rosano fielded bids from three parties keen to secure the delightful Californian Bungalow, selling it under the hammer for $2,970,000.

In Mitcham, the modern, single-level home at 2/2 Glen Road also attracted three bidders. Within walking distance to every amenity your heart could desire, the property was sold under the hammer by auctioneer Ben Williams for $1,100,000.

The auction of the immaculate, two-bedroom home at 12A Gona Street in Heidelberg West was well attended, as buyers and neighbours enjoyed complimentary coffee courtesy of Domain. Marketed by Tim Yu, the property was sold under the hammer by auctioneer Sarah Lowry for $751,000.

Experts say that the RBA's recent decision to increase interest rates won't be enough to halt further price rises, with the impact offset by more powerful factors driving the home price surge across the capitals. PropTrack senior economist, Eleanor Creagh, said record levels of overseas net migration, limited housing stock and a supply pipeline further constricted by the construction slowdown had offset the impacts of interest rate rises, helping push up prices.

"This additional increase in interest rates may slow the current pace of home price growth but it is unlikely to deter these gains, with strong population growth, tight rental markets and a housing shortfall fuelling further price rises." The latest PropTrack Home Price Index shows home prices are up 4.93% already this year, and are tipped to rise a further 5% next year, according to NAB.

We have another busy weekend coming up, with no further public holiday pauses until the festive season begins. If you need any real estate advice, contact your local Fletchers expert.