18th December 2023 / Jeremy Desmier: Market Update | 16 & 17 December 2023

We finally saw an end to the recent wet weather on the last auction weekend of the year! Just over 1,000 auctions were scheduled across Melbourne, with the Domain Group recording a clearance rate of 59%.

In Doncaster, we saw four bidders compete to secure the large, single-level home at 4A Marshall Avenue. On its own title, the home boasts two living zones, granite kitchen, and a location within walking distance to schools, Westfield Doncaster and public transport links. Director & Auctioneer, Jason Salan, sold the property under the hammer for $1,409,000.

The attractive, three-bedroom home at 1 Grenville Court in Blackburn South offered ideal family living in a convenient location. Director & Auctioneer, Ben Williams, fielded bids from four parties until the property eventually sold for $1,480,000.

At 6 Princetown Drive in South Morang, the Fletchers Bundoora team showcased the first-class, single-level home to a large crowd of buyers and neighbours. On a large block of approximately 676 sqm, the immaculate home was sold under the hammer by Partner & Auctioneer, Sarah Lowry, for $900,000.

The strength and pace of Australia's market rebound, despite interest rate increases, surprised many this year. At the start of 2023, PropTrack had forecast that national home prices would fall. Fast forward to November 2023, and home prices had increased by 5.5% year-to-date.

They further reported that at the end of 2022, sales volumes were sitting at similar levels to those in late 2019, having persistently declined as official interest rates were lifted every month from May 2002 onwards. In early 2023, there was a strong rebound in sales volumes that continued throughout the year. Along with sales volumes, buyer activity increased significantly this year, with the number of enquiries per listing on realestate.com.au higher than a year ago throughout most of 2023.

The total number of properties available for sale remained at persistently low levels in 2023 – buyers had little choice, which created significant competition. Whilst new listing volumes did increase from the middle of the year, the lift in supply did little to moderate price growth other than to slow its pace.

Another major factor supporting prices in 2023 was the significant demand for housing, which was fuelled by rapid population growth. Over the 12 months to March 2023, the population of Australia increased by 563,205 people and more up-to-date indicators from overseas arrivals and departures show little evidence of a slowdown.

Looking ahead to 2024, combined capital city house and unit prices are tipped to reach a record high. According to Domain, house prices nationally are forecast to rise between 5 and 7 per cent next year, while units are tipped to rise between 2 and 4 per cent. Domain Chief of Research and Economics, Nicola Powell, noted that, "what it really showcases is we are expecting interest rates to remain higher for longer and what we're really predicting here is the under supply of housing is really going to trump high interest rates."

We look forward to keeping you up to date in the new year, and hope that you have a wonderful holiday season!