1st August 2022 / Jeremy Desmier: Market Update | 30 & 31 July 2022

On the last auction weekend of July, auction volumes across the combined capitals increased for the third week in a row, to 1,508 properties going under the hammer. It was nice to see the sun shining, but we were reminded that winter is not yet over with the cold wind chill.

In Mount Waverley, auctioneer Steven Zervas fielded bids from four parties at the auction of 34 Pamela Street, which was on the market for the first time in 50 years. The lovely three-bedroom home zoned for Mount Waverley Secondary College sold under the hammer for $1,193,000.

The delightful two-bedroom unit at 3/13 Gillies Street in Mitcham attracted five bidders, with buyers attracted to its private position and central location. Auctioneer Ian van Eijk had a great time welcoming the new purchasers to the neighbourhood, selling the home for $920,000.

Auctioneer Pan Zhang sold two properties under the hammer in Doncaster, selling 1/8 Mervyn Street for $981,000 and 11 Harvell Court for $1,621,000. Both homes attracted four bidders.

Despite many buyers leaning towards established, renovated properties, the sale of 233 Mont Albert Road in Surrey Hills bucked the trend. The original Californian Bungalow on approximately 727 sqm sold quickly in post-auction negotiations.

Although interest rates are on the rise, the Reserve Bank's current cash rate of 1.35% is still historically low. There will be some good opportunities for first-home buyers to get a foothold in the market over the next 6-12 months, according to Real Estate Institute of Australia President, Hayden Groves.

With labour and materials shortages continuing to plague the residential building industry, the established housing market is where those first timers should be looking, Mr Groves added.

Overall, the property market is more stable now than it has been over the past few years, with prices having moderated and buyers less active, he said. That is likely to be the case until some of the inflationary pressures in the economy start to abate.

As a result, there's reduced competition and greater choice for first-time buyers, with the potential for price discounts. "We're not seeing first-home buyers having to compete with 15 or so other buyers, so they can afford to be more discerning over the next six to 12 months," Mr Groves said.

"We still have very low supply levels for housing stock in most areas around Australia, but spring often brings more stock to the market, as it's typically when most people start to get on the move. That means buyers will soon have more choice."

We are looking forward to a busy August in the lead up to the warmer Spring months.

Results. It's a Fletchers thing.