17th October 2022 / Jeremy Desmier: Market Update | 15 & 16 October 2022

It's hard to believe, but we have officially passed the halfway mark in the Spring selling season, and as shopping centres fill with Christmas decorations, we're reminded that the end of the year is not too far off either!

We enjoyed a welcome reprieve over the weekend in Melbourne, to the heavy rainfall that drenched the city a couple of days prior. The Domain Group reports that auction volumes across the combined capital cities decreased by 6.6%, to 1,431 properties scheduled to go under the hammer.

In Mont Albert, four bidders competed to secure the bright and spacious, two-bedroom, single level villa unit at 11/82 Victoria Crescent. Marketed by Partner Spring Chen and auctioned by Stefan Cook, the property offered buyers a chance to secure a lucrative slice of a blue-ribbon neighbourhood. The property sold under the hammer for $692,000.

Auctioneer Jack Peng fielded bids from four parties at the auction of 4 Yeneda Street in Balwyn North. Just a short stroll to local schools, shops, and cafes, the three-bedroom home is well-positioned on a corner block and surrounded by well-maintained, lush gardens. The property sold under the hammer, with Jack noting that "Melbourne's market is still holding well."

On Sunday, Partner Kristy Wang conducted her first public auction at 316 Canterbury Road in Forest Hill. The four-bedroom home showcased new renovations with further potential for extension, expansion, or development (STCA). Kristy fielded bids from five bidders and sold the property under the hammer.

The REA Group reports that several Melbourne houses have sold for more than $100,000 above reserve at auction this week, despite six consecutive interest rate rises since May.

Real Estate Institute of Victoria (REIV) president, Andrew Meehan, said there appeared to be rising numbers of buyers attending auctions, even after the Reserve Bank increased the cash rate by 25 basis points to 2.6 per cent earlier this month.

"If a home is in great condition, people are prepared to pay good money for it," Mr Meehan said. "But if a home needs some work, at the other end of the spectrum people are a bit hesitant because of the building industry, it's hard to get tradespeople and they're not sure how much repairs will cost."

The spring selling season is off to a slower than usual start as some vendors sit on the sidelines partly to avoid public holiday disruptions, although activity is expected to lift over coming weeks. PropTrack economist Angus Moore said that "after a busy first half of the year and busier-than-typical winter, property markets have had a slightly slower start to spring."

Mr Moore said while disruptions due to public holidays likely played a part in the softer activity in the opening weeks of spring, selling conditions have moderated from very strong levels earlier in the year. Mr Moore said activity is expected to pick up over the next couple of months, given spring and late spring, in particular, typically represent the seasonal peak.

"We would expect to see activity ramp up into the busiest part of the year, as is usually the case in late spring."

Results. It's a Fletchers thing.