15th August 2023 / Jeremy Desmier: Market Update | 12 & 13 August 2023

Over the weekend we saw the typical Melbourne 'four seasons in one day', with Saturday morning starting off with what felt like a chilly Autumn morning, then some beautiful breaks of Spring-like sunshine which made us dream that it was practically Summer, until reality set in the afternoon and the dreary grey sky came to stay, along with a reasonable drenching of rain!

With the Reserve Bank holding interest rates steady for a second consecutive month in August, borrowers felt a sigh of relief and some hope that the central bank has reached the end of its tightening cycle. Whilst the RBA still hasn't closed the door to future rate hikes if inflation takes too long to return to target, PropTrack senior economist Eleanor Creagh says confidence is returning to the property market – setting the stage for a strong Spring selling season.

Whilst many bidders seemed to take a conservative approach on auction day this week, most seemed to understand the importance of being the highest bidder, even if the property was passed in. As we see many times over, these highest bidders go onto buy the property they bid on, often shortly post-auction. We saw properties in Balwyn, Kew and Hawthorn sell in post-auction negotiations, in a couple of cases where there were multiple bidders, highlighting the importance of being the highest bidding party.

It was a different journey for the sale of the neatly presented, two-bedroom home at 431 Victoria Street in Brunswick West, which saw an incredible seven bidders in competition to secure the property. Boasting potential to renovate or redevelop (STCA), the prime location near Melbourne University and just metres from transport and parks, was a compelling drawcard for prospective purchasers.

The large, five-bedroom home at 11 Martin Street in Box Hill North saw two bidders tussle it out to secure the family-friendly property, zoned for Koonung Secondary College. The property sold under the hammer for $1,612,000.

PropTrack's Property Market Outlook Report, released earlier this month, predicts that home prices are set to increase between 2% and 5% nationwide this year, with most capital cities posting gains.

Cameron Kusher, director of economic research at PropTrack, said the new forecast had been influenced by this year's housing market recovery.

"We've seen a rebound in property prices this year and we certainly weren't expecting it – most people were expecting prices to continue to fall this year," Mr Kusher said. He cites the main drivers as the low number of properties coming to market, and strong migration levels.

Economist Eleanor Creagh believes that with the limited stock on the market and unseasonably high demand in some cities and regions is putting sellers in a prime position ahead of Spring: "Given limited stock is coming to market, buyer interest is being concentrated, leading to increased competition and solid selling conditions that are seeing prices continue to lift."

We certainly hope to see sustained confidence in the market as we move into Spring and if we can assist you, please contact us!