2nd September 2024 / Jeremy Desmier: Market Update | 30 August 2024

The last auction weekend of Winter saw a preliminary clearance rate of 69.1% achieved, as recorded by PropTrack. The Fletchers Group achieved a success rate of 63%, even as the state was pummeled by strong winds and wet weather.

Over the weekend, it took 51 bids from six bidders to find the new owner of the immaculately presented home at 50 Cambridge Drive in Glen Waverley. Auctioneer Ian van Eijk sold the property under the hammer to the successful bidder, welcoming a new family to the neighbourhood.

Despite a slow start, Spring Chen, Jeremy Desmier and their team saw a total of five bidders compete to secure the contemporary four-bedroom home at 17A Henry Street in Doncaster. A master-class in easy-care luxury, the property sold under the hammer for $1,320,000.

According to the latest PropTrack data, new home listings nationally were 12% higher in July compared to the sane time last year. PropTrack senior economist, Eleanor Creagh, said an uplift in real estate activity across all capital cities was likely this Spring.

"A relatively busy Spring selling season is on the cards, so there will probably be even more choice for buyers as the Spring selling season unfolds, although there's going to be more buyers active in the market too."

Most people now seem to expect interest rates to stay on hold for most of the rest of the year, with a drop either late this year or sometime in the first quarter of 2025. Prospective sellers and buyers are factoring that into their decision making, but are mindful that a possible rise could still happen, whilst hopeful of an earlier fall. However, more are starting to realise that if the Reserve Bank of Australia lowers the cash rate, prices may well rise again under the pressure of unleashed demand, and maybe they're better off trying to buy sooner rather than later.

Strong population growth, tight rental markets, and home equity gains are bolstering demand across the country whilst building activity remains challenged, exacerbating a chronic shortage of housing. Supporting price growth now and in the period ahead, July's tax cuts boosted borrowing capacities and buyer's budgets, while the persistent growth in home prices is likely motivating many to overcome affordability challenges.

As a result, housing demand remains bouyant, defying affordability constraints and pushing prices higher across much of the country.

We're looking forward to a busy month ahead as the busy Spring market gets underway. If we can assist you with your real estate plans this season, please get in touch.