4th March 2024 / Jeremy Desmier: Market Update | 2 & 3 March 2024

For the first auction weekend of Autumn, the REIV recorded an auction clearance rate of 76%, from approximately 748 auctions reported.

We saw an incredible five bidders at the auction of the renovated, single-level home at 3/28 Wolseley Crescent in Blackburn. Enjoying walking distance to schools, cafes and the train station, Auctioneer Ben Williams sold the property under the hammer for $1,655,000.

Another highlight amongst several strong results in the City of Whitehorse was for the auction of 18 Surrey Street in Box Hill South. Auctioneer Ian van Eijk fielded bids from six interested parties hoping to secure the immaculately presented, mid-century home. The property was knocked down to the successful purchaser at $1,520,000.

In Bulleen, the immaculately presented, four-bedroom home at 44 Flinders Street offered potential for families seeking multi-generation living possibilities. Marketed by Rino Presutto, the property attracted two bidders and sold for $1,324,000.

A magnificent, five-bedroom family residence, the two-level home at 18 Oak Street in Surrey Hills attracted five bidders and sold for an undisclosed amount. Marketed by Spring Chen and Stefan Cook, the property is zoned for Box Hill High and Surrey Hills Primary School.

The REA Group reports that home price growth accelerated in February, with strong buyer demand soaking up the influx of new properties that hit the market over summer. The latest PropTrack Home Price Index showed the national median home value jumped 0.45% last month, while the combined capital city median climbed 0.48%.

PropTrack senior economist, Eleanor Creagh, said the slowdown in price growth at the end of last year has reversed and prices have hit a new peak, despite rising listing volumes. "More homes have hit the market this year, but demand has kept up with that increase."

Strong population growth, tight rental markets and the chance of interest rate cuts have bolstered demand, Ms Creagh said. "The expectation that interest rates will fall in the second half of 2024 is likely providing a positive tailwind for activity," she said.

Despite more homes being listed for sale and rising prices making property less affordable, markets are expected to keep steaming ahead in 2024. A slowdown in construction has hampered the supply of new housing, concentrating demand for existing properties. Meanwhile potential rate cuts could boost buyers' borrowing capacities, giving them more money to spend.

The upcoming auction weekend is set to be a bit quieter due to the Labour Day long weekend, before numbers ramp up prior to the Easter break.