22nd April 2024 / Jeremy Desmier: Market Update | 20 & 21 April 2024

As we move into several busy auction weeks to the end of Autumn, the Fletchers Group was thrilled to achieve a strong 86% clearance rate over the weekend.

Over the weekend, we saw an incredible eight bidders compete to secure the fashionably designed, three-bedroom family home at 5 Arundel Court in Box Hill South. The property was sold under the hammer for $1,926,000.

In Ashburton, two bidders sought to secure the recently renovated Californian Bungalow at 4 Ward Street in Ashburton, which was sold to the successful bidders for $2,916,000.

Following fourteen months of consecutive home price growth and the recent pause on interest rates, the REA Group reports that investor and first-home buyer activity is rising and is showing a marked increase from the previous year.

New lending data from the Australian Bureau of Statistics (ABS) shows that the value of new loan commitments for housing has risen by 13.3% to $26.4 billion during the year to February 2024. This was driven by strong annual growth in loans to first-home buyers and investors. They respectively increased by 20.7% and 21.5% over the year.

Demand from these buyers is strong and is likely to rise, despite borrowing conditions being more difficult than what was seen during the pandemic, which could be due to a number of factors.

While interest rates are now higher than compared to previous years, they have stabilised recently and the market predicts that we may be at the peak, with decreases to follow. This has removed some uncertainty in the market, and lifted the confidence in those who are looking to buy.

As prices continue to rise, some buyers may want to secure properties before prices increase further and competition heats up.

The tightness of the rental market is another potential factor contributing to the growth in the demand from buyers. Vacancy rates are currently at a record low nationally and as weekly rents surge, those who are renting may shift to the buy market.

Sentiment has improved for buyers and sellers in recent months, and this is reflected in the persistent growth seen in the market. As demand continues to remain strong, we expect home prices to make further gains in the coming year.

If you need any real estate advice, please get in touch.