16th May 2023 / Jeremy Desmier: Market Update | 13 & 14 May 2023

Melbourne saw a steady number of auctions this week with a total of 728, following the previous week's count of 719. The clearance rate for the fifth week running stood above 70% and impressively, Fletchers achieved a 100% clearance rate, selling all 10 auctions successfully on the day.

Stock levels seem to be stable and recent initiatives in the draft 2023 Federal budget to relieve living costs and support housing have been met with approval from industry groups, though more action is needed to tackle the nation's housing supply crisis.

So, what does the Federal Budget 2023 mean for the property market?

Along with increased funding to support the aged care sector, measures to boost rental supply and construction of affordable rental housing were included in the 2023 budget. Treasurer Jim Chalmers acknowledged the challenges Australians face, but emphasised the importance of finding a balance between cost of living, essential services, and future growth.

As the rental crisis is projected to be a long-term issue, National Shelter CEO, Emma Greenhalgh, emphasised that more support is needed to attract, train, and retain half a million new building and construction workers by the end of 2026 to keep downward pressure on prices. While industry groups are pleased with the government's First Home and Regional First Home Buyer guarantees, they are still keenly aware of the challenge of the housing crisis and the burden of deposits for first-home buyers.

In Fletchers news...

Mitcham home buyers turned up in their droves to the stylish three-bedroom home located on Tarrangower Avenue on Saturday. Nestled among just three properties and adjacent to the breathtaking Eastlink Trail, this private oasis boasted a brand-new bathroom, single-car garage, and easy access to parks and shops. With the expert guidance of Fletchers Michael Gurry & Ian Van Eijk, a fierce bidding war resulted in 5 bidders taking the home $100,000 above reserve. Selling for $901,000, it's no surprise this home was in high demand throughout the campaign, given its unbeatable location and impeccable presentation.

Over in Forest Hill, 5 Henwood Street sold for an impressive $1,415,000 – after being offered for the first time in 63 years. A large, meticulously maintained family home on a versatile 632 sq m allotment, auctioneer & selling agent Jee Chin believes 'it was the homes endless possibilities for renovation or redevelopment (STCA)' that saw another 5 buyers compete on the day.

Over the weekend, we saw an incredible demand for our recently auctioned properties. On average, 5 bidders were competing for each of the 10 properties we had on offer, clearly revealing a renewed sense of confidence among buyers in the areas we serve. As we approach winter and the property market continues to evolve, our team of experienced agents are eager to provide guidance and support. We'd be glad to answer any questions and welcome your enquiry today.

Contact us HERE!