30th May 2023 / Jeremy Desmier: Market Update | 27 & 28 May 2023

Melbourne's real estate market has been buzzing with activity lately and the number of homes going up for auction each week is usually an important indicator of market health. We saw large crowds of potential buyers and onlookers at auctions over the weekend, demonstrating that there is still appetite to buy and also a lot of interest from property owners as to what their properties could sell for in the current market.

As inflation appears to be subsiding and interest rates approach their highest point, the housing industry has seen a rise in buyer confidence. Over the course of this month, the average number of potential buyers bidding on each auctioned property steadily rose week after week. The final weekend of May saw an impressive average of 3 competing bidders per property, resulting in a successful clearance rate for our group of 75%. It's a promising sign for the current state of the housing market!

Three results, in particular, caught our attention this week ;

• 25 Canterbury Road, Blackburn, sold for $1.63 million by Director & Auctioneer Ben Williams. This beautiful property is located around the corner from highly sought-after schools and has a massive 717 sq m allotment.
• 85 Essex Road, Mount Waverley, sold for $2.405 million through Steven Zervas. This stunning 5-bedroom home on a 720 sq m allotment was the perfect foundation for a long and happy future.
• 26 Agnew Street, Blackburn South, sold for $1.510 million by Director & Auctioneer Michael Richardson. This property, called on-the-market for $1.3 million, offers an inspiring future in a family-friendly neighbourhood.

The demand for homes remains strong despite limited listings and the evidence lies in the competitive bidding for several homes over the weekend. This shortage of homes for sale is driving up prices, creating a great opportunity for winter sellers. As the market remains tight, many buyers are showing confidence and opting to snap up listings pre-auction.

In Victoria, the REA Group reports that Melbourne's eastern suburbs of Ringwood and Wantirna in particular are experiencing the biggest combined difference between supply and demand. Listings were down 29% and 35% from a year ago respectively, while enquiries per listing were up 30% and 20%. A lot of would-be sellers still seem to be waiting, despite the current environment of tight supply and high demand.

If you are considering entering the market, you should feel confident that well-priced and well-presented properties are achieving great results and we expect that to continue into the cooler months.

Get in touch with us today!