2nd May 2022 / Jeremy Desmier: Market Update | 30 April & 1 May

After a quiet weekend due to ANZAC Day, auction numbers were up by 52.4% across the country, with 2,200 auctions scheduled in the capital cities.

The Fletchers Group was thrilled to achieve an auction clearance rate of 75%, despite the intense media scrutiny on the impact of an expected imminent rise in the official cash rate.

In Bulleen, the meticulously renovated, two-bedroom villa unit at 3/38-42 Thompsons Road attracted six bidders. Ready to move-in, the competition saw the stylish and light-filled home sell under the hammer for $780,000.

In Glen Iris, Auctioneer Michael Rosano called a smooth auction and successfully handled negotiations after passing in the first-floor apartment to the highest bidder. The conveniently located property sold for $627,500.

The family-friendly lifestyle offered by homes in the City of Whitehorse saw several properties in this municipality sell under the hammer over the weekend. In Nunawading, the lovely three-bedroom home at 37 Diosma Crescent sold for $1,195,000 whilst the single-level two-bedroom home at 2/1 Baldwin Road sold for $1,255,000.

The team at Fletchers Glen Eira also sold the charming family home at 13B Lord Street at auction, with three bidders seeing it sell for $1,476,000.

The PropTrack Home Price Index shows that Melbourne's supercharged house price growth stalled in April, rising only 0.01% - the slowest rate since the start of the pandemic. Units fared slightly better, seeing a 0.3% rise in the last month for a median of $605,000.

PropTrack economist and report author Paul Ryan said the market was in a "holding pattern" amid continued uncertainty around when and by how much the Reserve Bank of Australia (RBA) would increase interest rates by.

"It has now been flat for two months in a row and to some extent that was inevitable — the really strong growth we saw over the last two years just couldn't continue," Mr Ryan said. "The other aspect is the fact that inflation has been stronger than expected and that has brought forward expectations about if and when interest rates will go up."

Experts have warned mortgage holders to "stress test" their budget, amid forecasted interest rate hikes, particularly given that property prices are likely to move slowly to a more balanced market.

As we move into the final month of the Autumn selling season, we look forward to a conclusion to the Federal election on 21 May. Despite the usual pause on the day, PropTrack economists don't believe that this year, the election will have much of an impact on buyer or seller confidence, or market conditions. "Neither party has flagged any major changes to housing policy that would affect either how first-home buyers were going to approach the market or investors or existing vendors looking to upgrade."

Results. It's a Fletchers thing.