22nd August 2022 / Jeremy Desmier: Market Update | 20 & 21 August 2022

Auction volumes across the combined capital cities increased by 9.5% to 1,448 scheduled for Saturday, the second consecutive week of an increase in volume.

Despite the increased volume and cool weather, Melbourne's auction clearance rate saw the biggest weekly increase among the capital cities, and the Fletchers Group was pleased to achieve a success rate of 70%.

In Burwood East, a small crowd braved the brisk weather to watch six bidders compete to secure the well-maintained four-bedroom home at 7 Aruma Court. Offered for sale for the first time in 32 years, the home was sold under the hammer by Auctioneer Steven Zervas for $1,325,000.

Five bidders participated in the auction at 29 Thames Street in Box Hill, a charming three-bedroom home in the Box Hill High School zone. Offering several options in an excellent location, Auctioneer Jeremy Desmier declared the property sold to the successful bidder at $1,735,000.

In Blackburn, the renovated five-bedroom home at 18 Norris Court attracted a lot of interest from buyers throughout the campaign, as it offered a first-class family lifestyle. Three parties traded bids for the renovated home in the quiet court location and was sold under the hammer by Auctioneer Ben Williams.

The REA Group reports that multiple homes sold hundreds of thousands of dollars above reserve on the weekend, as the impact of interest rate increases seems to be diminishing.

Real Estate Buyers Agents Association of Australia president Cate Bakos said for larger homes that didn't need any work done on them, there was now heat in the market. "People have got their heads around interest rates. Ultimately people want a home and if paying a little premium lets them settle into one, a lot of people see the value of that."

Real Estate Institute of Victoria president Richard Simpson the clearance rate reflected a "good result" for the current market, and homes selling far above reserve were a healthy sign heading into spring.

Mr Simpson said the market wasn't yet turning back up but was confident interest rate rises across the rest of the year would have less and less of an impact on sales. "This is what I've been saying all along: the confidence is still there, because employment is still strong," he said.

Auction volumes are expected to rise again next week, as we move out of the winter lull and closer to the spring selling season.

Results. It's a Fletchers thing.