25th September 2023 / Jeremy Desmier: Market Update | 23 & 24 September 2023

We were treated to an absolutely stunning display of Spring weather over the weekend, with approximately 726 properties going for auction. The clearance rate reported by the REIV was 76%, compared to 80% at the same time last year.

The Spring selling season is well under way, with more choice available for buyers, who have had limited options for much of the year. In good news for property owners, national home prices have grown for the eighth consecutive month, the longest stretch of growth since the pandemic period.

The REA Group reports that one driver of the recovery in home prices this year has been the subdued listings environment. The limited flow of new listings coming to market in the first half of the year meant buyers were competing over fewer properties, contributing to the lift in home prices so far in 2023.

Home prices have also been underpinned by record levels of net overseas migration, the challenged rental market, and a shortage of homes.

In the face of such a substantial reduction in borrowing capacity and retraction in affordability, the fast turnaround in home prices has been an unusual occurrence, and a testament to the strong demand from buyers.

The advent of Spring has seen a rise in activity, with new listing volumes in Melbourne rebounding significantly - +20.8% year-on-year – recording the busiest end to Winter in more than a decade.

Improved seller sentiment has been a key driver to the increase in listings, with confidence rising as interest rates remain on hold amid positive market conditions. In welcome news for both buyers and sellers, it's become more likely that the peak in interest rates is here.

Over the weekend, we saw two bidders compete at the auction of the family home at 8 Asquith Street in Box Hill South. The beautifully renovated home was sold under the hammer by agent & auctioneer, Stefan Cook for $1,960,000.

In Mitcham, Director Ben Williams fielded bids from three parties competing to secure the well-presented, three-bedroom home at 4/1 Rupert Street. Offering a single-level design in a convenient location, the property sold under the hammer for $811,000.

In Watsonia, the opportunity to redevelop attracted two bidders to participate in the auction at 254 Nell Street West. Ready to enjoy today and enhance tomorrow, the property was sold under the hammer by auctioneer Thomas Bechelli.

Fletchers Blackburn Director, Rob Sheahan noted that whilst there is more stock on the market at the moment, the number of buyers in the market is higher, however they are generally more reserved in their efforts to buy a property. A number of properties are going to auction and passing it, but selling quite quickly after, and Rob describes it as a more balanced market.

It will be a quiet weekend in terms of auctions this Saturday, due to the AFL Grand Final long weekend, before activity picks up again the following weekend.