30th May 2022 / Jeremy Desmier: Market Update | 28 & 29 May 2022

The last auction weekend of Autumn saw over 2,600 properties scheduled to go under the hammer across the capital cities, a big increase from the previous weekend due to the Federal election.

The attractive three bedroom plus study home at 1/17 Bowen Street in Kew attracted multiple bidders after a strong campaign. Tucked peacefully within a low traffic enclave and boasting two substantial living zones, the home sold under the hammer with Auctioneer Jeremy Desmier for $1,915,000.

Auctioneer Jee Chin was thrilled for his vendors, after the successful sale of 1/11 York Street in Glen Waverley. The contemporary town residence sold after auction for $1,230,000.

In Burwood East, the towering, modern townhome at 1/6 Tiller Street enticed four parties to bid. Offering stunning open plan living and dining, kitchen with marble benches and open outdoor entertaining deck, the property was perfect for lifestyle living. Auctioneer Steven Zervas declared the property sold at $1,439,000.

The picture-perfect home at 36 Peter Street in Box Hill North offered a stylish renovation and multiple living zones, within walking distance to the primary school, buses and Koonung Creek Trail. Three bidders got involved and the property sold under the hammer for $1,660,000.

The May 2022 PropTrack Property Market Outlook notes that after prices increased rapidly throughout the pandemic, the heat continues to come out of the market. With interest rates now rising, the expectation is that price growth will continue to slow over the coming months.

However, many indicators show that the market still maintains a level of strength.

The supply of properties listed for sale remains tight, with total listings 38.4% lower than the decade average. More new listings are now hitting the market each month than experienced in recent years, although a string of public holidays caused vendors to pull back in April.

Sales volumes have also eased, with the number of preliminary sales 3.6% lower over the first four months of 2022 than the same period last year. Despite this, the number of potential buyers per listing is 9.7% higher year-on-year.

The increase in new listings has afforded buyers more options and less urgency to purchase. With an interest rate increase in May, and more rate increases expected over the coming months and years, it is likely that demand for properties will ease, and we will likely start to see national property prices start to decline.

While higher rates and price falls might discourage vendors from listing, many have seen a significant increase in equity over recent years and they tend to buy and sell in the same market, so while they may not get top dollar for their property, the property they are looking to purchase will have also reduced in price.

We're looking forward to assisting our clients throughout the Winter selling season, and if you need any advice about your property situation, please don't hesitate to reach out.

Results. It's a Fletchers thing.