17th July 2023 / Jeremy Desmier: Market Update | 15 & 16 July 2023

The end of school holidays across Victoria saw auction volumes rise again, with the preliminary capital city clearance rate holding above 70%.

Mortgage holders enjoyed a welcome reprieve this month, with the Reserve Bank's decision to hold interest rates steady for the second time this year. PropTrack senior economist, Paul Ryan, said that the housing market has so far shown "incredible resilience" to sharply higher interest rates. Home prices have defied expectations and have steadily risen every month of 2023.

Despite this, many potential vendors still seem hesitant to sell, with the reduced supply of properties for sale contributing to the improved selling conditions that have emerged this year. Limited stock of properties for sale remains a key challenge for buyers.

However, the REA Group reports that once interest rates have reached their peak, it is likely that market sentiment will improve. This should help to restore confidence amongst buyers and sellers and could potentially lead to a very busy Spring. The current consensus is that the RBA is pretty close to the peak in the cash rate, however people should be aware that there are still more interest rate rises to come before then.

Senior economist Paul Ryan notes, "I think the broader thrust is everyone expects that interest rates have to go higher, and people will debate how much higher, but I guess the news yesterday was probably that the RBA had signalled that they maybe a little closer to the end of hikes in that they are choosing to pause again now. It's good news for buyers with certainty, and sellers for that matter as the certainty really helps. If you know the interest rate you are looking at now, maybe add 50 basis points to that and that's kind of what you're looking at hopefully for the next year or so. Sellers will realise that prices are growing and demand is really strong and it's actually quite a solid market people are selling into."

Over the weekend, there was a large crowd in attendance at the auction of the elegant family home at 3 Luke Avenue, Blackburn. Director and Auctioneer, Ben Williams, fielded bids from five interested parties, before the Blackburn High School zoned property was sold under the hammer for $1,425,000.

Fletchers Banyule Director & Auctioneer, Greg Taylor, also saw competition from five bidders at the auction of 58 Bellevue Avenue in Rosanna. In one of Rosanna's most sought-after pockets, the family-friendly home sold under the hammer for $1,290,000.

In Fletchers news, our team and their partners enjoyed a wonderful night at The Forum, celebrating our Annual Awards Night. Keep an eye out for photos and video on our socials soon!

Have a wonderful week and if you need any real estate advice, please reach out.