8th October 2024 / Jeremy Desmier: Market Update | 5 & 6 October 2024

We're halfway through the Spring selling season and there is plenty of activity in the market with the end of school holidays.

Impact of rate cuts on Victorian home prices

The REA Group reports that house prices are set to surge upwards of $10,000 in the space of a month in 188 Victorian suburbs and towns when interest rates are cut. The best performing suburbs by percentage after a rate cut historically centre on family-friendly postcodes with good schools, such as Doncaster East, Templestowe, Glen Waverley, Vermont and Wheelers Hill heading the list.

A home price boost is expected across the state, with the analysis recording an uptick within four weeks of the Reserve Bank starting its last four reduction cycles, excluding emergency cuts during the pandemic.

Rents remain high, but there's a silver lining for Aussie renters

The cost of renting is still higher than a year ago, but the pace of rent price growth is starting to ease, the latest PropTrack data reveals. National median weekly rents hit $610, a quarterly increase of 1.7% in the three months to September.

However, the annual growth of 7% represents the weakest annual rental growth since September 2021. PropTrack director of economic research, Cameron Kusher, said a boost in rental stock and rising rents have been affecting demand. "With more stock available for rent, and the cost of renting rising at a pace above inflation over recent years, the capacity to pay rent is now impacting demand", Mr Kusher said.

Despite still being tough for renters, Mr Kusher predicted a "more balance" market on the horizon.

Fletchers Auction Weekend

The Fletchers Group was thrilled to achieve an 87% success rate for the auction weekend for our clients.

Over the weekend, 80 bids were exchanged between four bidders in the drenching rain at the auction of 3/11 Creek Road in Mitcham. A stylishly updated single-level gem, the property was sold under the hammer for $762,000.

In Ashburton, the immaculate single-level home at 2/18 Nicholas Street offered buyers a pristine, original design with potential to renovate. Director & Auctioneer Michael Richardson sold the property under the hammer for $1,170,000.

A masterclass in easy-care luxury, the high-quality, four-bedroom home at 1/10-12 Shady Grove in Nunawading attracted three bidders and sold under the hammer for $1,301,000.

This coming weekend, the number of auctions is set to rise, with more than 1,000 auctions scheduled for Melbourne. For any real estate advice, please give us a call.