21st August 2023 / Jeremy Desmier: Market Update | 19 & 20 August 2023

It has been a very busy month in real estate, with rising home prices and stabilising interest rates boosting confidence amongst vendors, triggering an early increase in listing months ahead of Spring. The unseasonal increase in supply has meant that buyers have become spoilt for choice, particularly coming off a period of low stock levels.

Over the weekend, four bidders competed to secure the enchanting four-bedroom home at 70 Sir Garnet Road in Surrey Hills. Zoned for both Chatham Primary and Camberwell High School, the private home is perfect for families and was sold by Auctioneer Jeremy Desmier under the hammer for $2,117,000.

In Balwyn North, the elegant four-bedroom home at 4A Vicars Street saw an incredible six bidders hoping to secure the property, which is zoned for Balwyn High School. Offering a family space ideal for multi-generational living, the home sold under the hammer for $2,126,000.

Blackburn Director & Auctioneer, Rob Sheahan, auctioned two properties in Mitcham, selling both under the hammer. He noted that both properties had just two bidders, with the increased supply is causing demand to "level out".

As we move into the Spring selling season, it will be interesting to see how the rise in fresh listings will continue to impact buyer demand. CoreLogic reports that the flow of new listings added to the Australian housing market has been rising since mid-June. Over the four weeks ending August 13, the number of new listings added to the housing market was 3.3% above the previous five-year average.

CoreLogic Research Director, Tim Lawless, notes that there is a positive correlation between rising housing values and a lift in new listings, with the counter-seasonal lift in vendor activity attributed in part to the positive turn in housing values across most regions since March.

Whilst the number of new listings is rising across most regions, total advertised supply is reported as generally remaining tight. Since the beginning of winter, total advertised supply (all advertised homes for sale) has reduced by 3.5% despite a 13.2% rise in the flow of new listings. Melbourne has shown a 4.4% rise in total advertised stock levels, over the four weeks ending August 13. Considering advertised supply levels are starting to rise, selling conditions are likely to become more competitive through Spring.

More choice and less urgency is a positive outcome for buyers, but it could see an easing in auction clearance rates and longer selling times unless we see a commensurate lift in buyer demand alongside higher advertised supply levels.

We're looking forward to another busy auction day on Saturday – the last one for Winter! If you're considering selling or would just like some up-to-date advice, please contact us.