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

The Domain Group reports that Victoria has experienced unprecedented levels of auctions in the last fortnight, with listings triple what they were this time last year.

As we move into the Autumn selling season, auction clearance rates are showing signs that supply may have already exceeded the number of buyers in the market. The conditions allow buyers in Melbourne to be more patient and astute when buying a home which, in turn, requires current and potential sellers to also have patience as they seek to achieve their ideal result.

Domain head of research and economics, Dr Nicola Powell notes that, "a buyer approaching this Autumn season is in a different position to what a buyer was in Autumn 2021." Of course, this time last year, Australia was in the early days of an unprecedented property boom that would touch just about every corner of the nation.

Over the weekend, the classic three-bedroom home at 23 Walerna Road in Glen Iris bucked the trend, with auctioneer Steven Zervas fielding bids from six parties trying to secure the home. The vendors had owned the home for 50 years, with the successful purchasers intending to build their dream/forever home on the level 700sqm block.

Six bidders also got involved at the auction of 25 Gardenia Street in Blackburn, a much-loved Californian Bungalow zoned for Box Hill High School. The property sold under the hammer for $1,921,000.

In Surrey Hills, two auctions took place on Union Road. The quiet, single level unit at 2/60 Union Road saw five bidders put their hands up, with the property selling under the hammer for $943,000. At 37 Union Road it was a different story, with interested parties reluctant to place a bid. The home did sell however, in post-auction negotiations.

In Mernda, Director Nicholas Matkin and the Fletchers Doreen team were thrilled to sell 27 Parkedge Boulevard after just one week on the market!

In other property news, the REA Group reports that new lending to investors continued to surge in January, with an increase of 6.1% month-on-month, to be 67.8% higher than a year ago. The return of investors to property markets will start to see an increase in the number of homes available for rent.

Investors leaving the market through 2020 and early 2021 reduced the total stock of properties for rent, which may have contributed to fewer rentals coming to market and the restricted choice renters have been facing.

Results. It's a Fletchers thing.