26th November 2024 / Jeremy Desmier: Market Update | 23 & 24 November 2024

We absolutely sweltered over the weekend, with temperatures in Melbourne well over 30 degrees! We offered iced coffees and cold drinks at several of our auctions, helping to keep buyers stay cool. It is hard to believe that next weekend will be the final auction weekend of the Spring selling season.

Early rate cut would see values boom:

Australia is on the brink of a fresh property boom in 2025, as long as one thing happens early in the year, a new report has revealed.

SQM Research has released Christopher's Housing Boom and Bust Report 2025, which predicts property market movements for the year ahead, when factoring in a range of separate economic outcomes.

In the most likely, or "base case" scenario, which would see a 25-50 basis point rate cut midway through next year and population growth of 500,000 plus, property values would rise 1-4 per cent, as long as there were no new inflationary outbreak events.

If the RBA cuts rates in February, the research predicts growth of up to 10 per cent at a national level and in this scenario, every capital city would return to growth.

PropTrack economist Eleanor Creagh said interest rates were an important driver of property values, but "the supply of properties for sale, home building activity, labour market conditions, rate of immigration, state of rental markets and interstate and regional migration" were also factors at play.

"Over the months ahead, the pace of home price growth is expected to slow. Elevated interest rates and affordability constraints are weighing on buyers while there are many more properties to choose from with more stock listed for sale – all contributing to the slowing in growth," Ms Creagh said. "Still, prices are expected to remain on the rise in the months ahead, and once interest rates begin to move lower next year, rebooting buying activity with price growth likely to re-accelerate.

Fletchers Auction Weekend

The Fletchers Group was thrilled to achieve a strong auction clearance rate of 71 per cent for our clients. A highlight result was in Kew, where four bidders competed to secure the well-located Californian Bungalow at 16 Grandview Terrace. The home sold under the hammer for $1,936,000.

Another highlight was in Deepdene, where two bidders were in competition to secure the elegant town home at 2/28 Abercrombie Street. Offering perfect privacy in a blue-ribbon pocket, the home sold for $1,701,000.

We have just four auction weekends left for 2024! If you need assistance with your property plans, please give us a call.