15th August 2022 / Jeremy Desmier: Market Update | 13 & 14 August 2022

Auction volumes across the combined capital cities increased by 8% to 1,324 scheduled for the weekend, continuing the upward trend seen in recent weeks. We enjoyed beautiful weather throughout most of the day until storms hit, as well as strong clearance for the Fletchers Group of over 80%.

In the morning, Partner & Auctioneer, Steven Zervas, conducted a challenging auction at 1/11 Wridgway Avenue in Burwood. The charming, four-bedroom home attracted two bidders who traded bids for an hour until finally, the sale price of $900,000 was reached.

On its own title with no owner's corporation, the generous three-bedroom home at 25 Sutton Street in Balwyn North saw four bidders compete on auction day. In the Balwyn High School zone, the property sold under the hammer for $1,650,000.

After a strong marketing campaign run by Partner Spring Chen, the street was packed for the auction of 9 Roderick Street in Doncaster East. A total of nine bidders sought to secure the stylish three-bedroom home, located in the East Doncaster Secondary College zone. The property sold for $1,561,000.

The five-star living and subtle luxury of the near-new home at 10A Wellesley Street in Mont Albert also attracted a large crowd and four bidders. Director & Auctioneer, Michael Richardson, fielded quick bids until the property was sold to its new owner, for $2,942,000.

The REA Group reports that a record number of Victorian households are switching home loan providers, as repayments increase due to recent rate rises. However, one in five of the state's mortgage holders still has "no idea" what their interest rate is.

Latest Australian Bureau of Statistics data shows a record 8,115 Victorian owner occupier households refinanced to another provider in June, topping the previous monthly record of 7,420 set in May.

Masters Broker Group director Mario Borg said it was "definitely harder" to refinance now than it had been over the past few years — even if not asking for more money. "The qualifying rate has naturally gone up from what it was in the last few years because the cash rate has gone up, so interest rates have gone up," he said.

"The qualifying rate is what banks are judging you on to ensure you can afford the loan. It's not just the interest rate, they have a safety buffer to make sure you can weather it as interest rates go up … this is generally around 3 per cent on top of the actual interest rate."

Mr Borg said refinancing or getting a home loan was much more complex than it was in the past, with so many different lenders and, within that, different approaches to taking on risk, so "a specialist is the best person to help you through the maze of obtaining a home loan".

With the largest annual rise in total homes for sale in 12 years, buyers are enjoying more choice during a busier-than-usual winter. Particularly after a competitive couple of years, the extra choice will let many buyers get a head start on the typically busier spring selling season.

Results. It's a Fletchers thing.