25th April 2022 / Jeremy Desmier: Market Update | 23 & 24 April 2022

We saw low auction volumes this week compared to the first quarter of 2022, due to ANZAC Day. However, they have bounced back strongly despite the long weekend in an impressive amount of auction activity.

Over the weekend, the Fletchers Group achieved a clearance rate of 75% on what turned out to be a gorgeous Autumn day in Melbourne.

In Rosanna, two bidders sought to secure the three-bedroom home at 1/57 Hillside Road. In a perfect position close to transport and the Village, the home offered immediate comfort with potential to renovate, selling under the hammer for $975,000 by the Fletchers Banyule team.

In Brunswick, four bidders competed for the Victorian cottage at 54 Donald Street, a two-bedroom home which was last sold in 1996 for $180,000 according to CoreLogic records. The abode was declared on the market at $940,000 before being knocked down at $1,050,00 by Auctioneer Sarah Lowry. Senior Property Consultant, Brooke Warwick, said that it was a "great result", as the property needs work. A young Melbourne resident purchased the property and hopes to renovate.

In an incredible result at auction, Nick Callander and the Fletchers Mornington Peninsula team sold the beautifully presented home at 4 Wilby Street, Sorrento for $3,115,000. Tranquil and private, the four-bedroom home offered fantastic living and entertainment areas, alfresco deck, solar-heated swimming pool and, of course, a coastal lifestyle.

In its March quarterly report, the Real Estate Institute of Victoria (REIV) reports that Melbourne's coastal suburbs and regional towns are dominating the top spots for house growth. The top three suburbs for annual median house price growth are in the local government area of Mornington Peninsula. The suburb of Rye led the house price growth with a 48 per cent annual increase, bringing the median cost of a home in the seaside suburb to $1,195,000. Mount Martha saw a 34 per cent annual increase taking its median house price up to $1,870,000, while it's upcoast neighbour Rosebud grew 32 per cent to $851,121.

However, metropolitan Melbourne still has plenty on offer for different budgets. Houses in Melbourne's traditionally more affordable suburbs have also reported strong annual growth. The median house price in Werribee grew 18.7 per cent to $620,000, while Sunbury saw a 16.8 per cent spike to $652,500.

The REIV notes that "as expected, the report shows the metropolitan housing market is stabilising, but the fundamentals remain strong". While the quarterly data reported a 0.3 per cent drop in metro house prices ($1,121,500) and a 0.9 per cent decrease in Units and Apartments ($684,000), the annual median house price rose 18 per cent from $932,500 to $1.1 million in the last twelve months.

After recording strong growth for over two years, the Victorian residential market should see a steadier period, as supply catches up with demand.

With a short week as we pause to acknowledge and pay our respects on ANZAC Day, we look forward to another busy weekend before moving into the last month of Autumn.

Results. It's a Fletchers thing.