6th April 2021 / Rob Fletcher: Market Update | 3 & 4 April 2021

We had a quieter weekend due to the Easter break, after a strong finish to the first quarter of the year with one the busiest auction days on record.

The Domain Group reports that the number of property listings on the market slumped in the run-up to Easter, leading to fears that home prices will surge further as demand continues to outpace supply. Domain senior research analyst, Dr Nicola Powell observed that "we are currently seeing a depletion of current stock in the market, where buyers are absorbing all the old listings as well as the new, as there's a real shortage of supply".

The effect on property values has seen them skyrocketing at the fastest rate in 32 years, with Melbourne values jumping 2.4 per cent in a month to a median of $736,620. With interest rates expected to stay at record lows for several years and the economy recovering post-COVID, the housing market is booming.

CoreLogic's executive research director, Tim Lawless, commented that "with economic conditions consistently beating forecasts and interest rates likely to remain at record lows for an extended period of time, Australians are feeling more confident to make high commitment decisions". He added, "we are expecting housing values will continue to rise through the year and probably next year as well, as long as interest rates remain at their record lows".

With a record number of properties listed for sale in March, we are looking forward to a busy Autumn. With five auction days available in May, if you're considering selling, get in touch with your local Fletchers agent to arrange a complimentary appraisal and discussion about the right marketing strategy for you.