5th August 2024 / Jeremy Desmier: Market Update | 3 & 4 August 2024

Over the weekend, approximately 800 homes went under the hammer across Melbourne, with a clearance rate of 70.4% recorded by CoreLogic. The Fletchers Group was thrilled to achieve a success rate of 75% across our network of offices.

In Kew, five bidders competed to secure the charming, three-bedroom townhouse at 4/111 Normanby Road. In immaculate, move-in ready condition, the property boasts new carpets and a location adjoining the Outer Circle Linear Park. Marketed by Nick Fletcher and Suki Zhuang, the property sold under the hammer.

Behind a pretty Californian Bungalow façade, an exceptional renovation had transformed the four-bedroom, three-bathroom home at 23 Johnston Street in Ashburton into a contemporary lifestyle masterpiece. Agent and Auctioneer Michael Rosano sold the property under the hammer, after fielding bids from three parties.

Inflation data released by the Australian Bureau of Statistics (ABS) on Wednesday showed the Consumer Price Index (CPI) rose 1% during the June quarter, and 3.8% over the year. While the quarterly rate of inflation remained steady following a 1% rise in the March quarter, the annual rate was slightly higher compared to the last quarter's result of 3.6%.

However, the result was lower than what economists at most of the big banks had expected, and broadly in line with the Reserve Bank's forecasts, reducing the likelihood of an interest rate rise in August.

Headline inflation is still above the RBA's inflation target of 2% to 3%, with the central bank forecasting inflation to reach that band by the end of next year. The lower than expected inflation result eases the pressure on the RBA to hike rates and means that the next move to interest rates is likely to be down, according to PropTrack senior economist, Paul Ryan. "My assessment if that they don't view that they need to raise rates. If anything, it will push rate cut expectations earlier, maybe to the middle of next year", he said.

Mr Ryan further predicted that in Melbourne, home values would remain flat or rise slightly in the next six months, especially around Spring when more buyers tended to be in the market. The Victorian representative for the Real Estate Buyers Agents Association of Australia (REBAA) believes that now is a good time for investors to swoop, even as large numbers of existing landlords offload rentals in response to the state's property tax regime and rental reforms.

Mr Assifal, the Victorian representative, noted that "by homing in on the right locations and keeping an eye on quality, both investors and homebuyers can find promising opportunities." The professional buyer added that the key drivers to the state's real estate market were population growth and infrastructure development.

"Melbourne continues to attract a significant influx of new residents, both from interstate and overseas, with Victoria experiencing the biggest annual population increase out of the states."

The number of auctions this weekend will pick up a bit, with approximately 1,800 properties scheduled to go under the hammer across the country. If we can assist you with your preparations for a Spring sale, please get in touch.