7th February 2022 / Jeremy Desmier: Market Update | 5 & 6 February 2022

Just over 400 auction results were reported to the REIV for the first auction weekend of February 2022, with numbers expected to build over the coming weeks.

Tucked privately behind a garden rich with colourful flowers, the neatly presented home at 1/13 Stott Street in Box Hill South attracted four bidders on auction day. Auctioneer Stefan Cook knocked the property down to the successful bidder at $850,000.

The auction crowd at 2 Madison Boulevard in Mitcham enjoyed the shade provided by the leafy Madison Gardens Estate, as they watched Connor Sun field bids from three interested parties. The property was sold under the hammer for $1,068,000.

In Ivanhoe, the substantial two-storey home at 4/10 Oriel Road was auctioned, offering the successful buyer a peaceful living environment close to parklands, playgrounds and sporting facilities. The Fletchers Banyule team sold the home for $1,055,000.

In other property news, Reserve Bank of Australia (RBA) Governor, Philip Lowe noted that "there is a growing trend of parents and grandparents helping their children into the property market". He expects that the 'Bank of Mum and Dad' and even the 'Bank of Nana and Pop' to be an ongoing feature of the Australian economy. "You can look at that in a couple of ways. One, say that's good because it's helping children. Another perspective is it just reinforces the existing distribution of wealth within society".

University of South Australia research released on Thursday found millennials are being "locked out" of the housing market by older generations. Lead Researcher, Dr Braam Lowies said that Australia had an ageing population, the majority of whom wanted to live in the community rather than in residential care and were able to do so with greater confidence and security thanks to growing government support.

"Yet on the other end of the age spectrum, Millennials are finding themselves locked out of the market as the Silent Generation and Baby Boomers retain a significant portion of the housing stock, much of which has considerable value and development potential due to its lot size and location," he said. "For Millennials, this limits their housing options, creating severe housing tenure inequalities. The consequence is that younger people are frequently compelled to revert to the parental home or the rental market - and this is despite government grants to support first-home buyers."

The last three auction weekends of Summer will have increased numbers of properties available for potential buyers, which is fantastic news for those still searching for their dream home or ideal property investment.

Success. It's a Fletchers thing.