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

We were back into the normal swing of things over the weekend, with PropTrack records showing that 457 properties went under the hammer, with 71 per cent sold. It's a small sign of what's to come, with auctions scheduled in Victoria set to soar over the month, the volume this summer "rivalling the spring market."

Positive news that the inflation rate is dropping, and interest rates expected to be kept on hold this month, has instilled confidence in both buyers and sellers. In fact, financial markets are pricing in almost no chance of an interest rate hike in February, with the first cut projected for September.

CoreLogic Head of Research, Eliza Owen, said that falling inflation has implications for monetary policy: "the more inflation comes in under expectations, the firmer the case for interest rates remaining on hold in February, and coming down later this year. A reduction in interest rates is likely to boost housing demand."

Real Estate Institute of Australia (REIA) President, Leanne Pilkington, said that the data suggests that rate hikes have finished: "the pointers are that we have seen the end of rate rises and if this continues, home buyers can anticipate a rate reduction later this year."

Many buyers are hoping to secure a property before competition heats up further – the advice really is to buy when you're ready, rather than trying to wait it out.

Over the weekend, we saw an excited buyer compete against two other parties to call Mitcham home, at the auction of 26 Kulnine Avenue. Offering opportunity to renovate, rebuild or redevelop (STCA), the property was sold under the hammer by Auctioneer Ian van Eijk for $1,020,000.

In Balwyn North, an incredible four bidders competed to secure the opportunity on offer at 4 Citron Avenue. Perfectly positioned in a prized family neighbourhood, the property on 600 sqm was sold under the hammer.

We look forward to keeping you up to date with market activity this year and wish you all the best with your property plans! If we can assist, give us a call.