6th June 2022 / Jeremy Desmier: Market Update | 4 & 5 June 2022

The brisk weather over the weekend reminded us that Winter had officially arrived, as over 2,100 auctions were scheduled across capital cities.

Whilst there are still some properties being sold under the hammer with multiple bidders competing, REIV President, Richard Simpson, noted that more buyers were attempting to score properties after passing in at auction.

"Buyers are thinking they may be able to get something a little cheaper than what [properties] are advertised as", he said. "People are also wanting to get deals done before interest rates likely rise by next Tuesday."

However, he also noted that low stock levels were helping to keep prices afloat. "The stock levels tend to come off a bit and the buyers are still there. That generally tends to support prices in some respects, because the stock levels aren't great."

Fletchers Partner & Auctioneer, Steven Zervas comments that, "I am finding that buyers are more than willing to participate on auction day and purchase as soon as possible before their pre-approval is reassessed by their mortgage lender for less, on a higher rate. The fear of buyers losing their borrowing power is what I believe is driving the market at the moment. I am recommending all my potential sellers to go to market as soon as possible to avoid this situation."

Over the weekend, four bidders participated in a cracking auction at 4/423 Tooronga Road in Hawthorn East. The attractive two-bedroom apartment offered north-facing living/dining, renovated stone kitchen and a premium lifestyle close to shops, restaurants, and transport. After a fantastic campaign run by agent Jackie Chu, the property sold under the hammer for $578,000.

Auctioneer Ian van Eijk engaged the crowd at the auction of 11 Golden Glen Road in Forest Hill, which saw five bidders participate to secure the remarkable family home. With a successful marketing campaign run by Senior Associate, Michelle Yan, the home sold for $1,693,000 to the highest bidder.

The auction of 41 Athelstan Road in Camberwell was a relatively quick affair, with bidders wasting no time to make their mark. The four-bedroom Californian Bungalow has been renovated and extended and is zoned for Camberwell High School. Director & Auctioneer, Jason Salan, declared the beautiful original home sold at $2,725,000.

At 14 Varzin Avenue, Director & Auctioneer, Jeremy Desmier was offering "a little bit of Eltham in Surrey Hills." The Graeme Gun inspired home boasts soaring ceilings with exposed beams and two garden-view living areas. The property attracted a small crowd of serious buyers on auction day and after bidding between three parties, the property went on to pass in to the highest bidder, selling shortly thereafter.

The PropTrack Home Price Index for May 2022 shows that national price growth fell for the first time since the start of the pandemic, down -0.11%. However, this follows the third-fastest episode in Australia's history, with prices up 14% in the year to May, and 35% since March 2020. Prices adjusted quickly to the reduction in borrowing costs as the pandemic shocked the economy and interest rates fell to their lowest level on record.

As inflationary pressures increase, expectations that interest rates would move higher has weighed on price growth. The speed of official interest rate hikes and wages growth remain the key unknowns for price growth moving forward.

Results. It's a Fletchers thing.