8th August 2022 / Jeremy Desmier: Market Update | 6 & 7 August 2022

On the first auction weekend of August, we were treated to some brilliant winter weather – it was certainly nice to see some sunshine!

In Burwood East, the three-bedroom home at 8 Bellevue Avenue was being offered for sale for the first time in 58 years. Well located around the corner from shops, transport and schools, auctioneer Steven Zervas fielded bids from six parties before the property was knocked down as sold at $1,225,000.

Boasting a classic design, the lovely four-bedroom home at 9 Alan Street in Blackburn South attracted four bidders. Offering opportunity to renovate or redevelop in an excellent location, auctioneer Rob Sheahan declared the property sold at $1,612,000.

On Sunday, a large crowd assembled for the auction of 3 Beresford Close in Doncaster East. In a highly desirable neighbourhood, the home offers an ideal layout and expansive living zones, perfect for entertaining. With an excellent campaign by Partner Spring Chen, the property attracted competitive bidding from five parties, until it was knocked down at its eventual sale price of $1,863,000.

The Reserve Bank's (RBA) latest interest rate hike this month was the fourth consecutive increase, in its most aggressive hikes in decades. However, the REA Group reports that experts have pointed to signs that the RBA is considering easing back to smaller moves or taking a breather.

The cash rate has now increased by 175 basis points since May and is still predicted to climb at least 2.6% and as high as 3.35% by the end of the year or early next year, according to economists at Australia's four largest banks. But they and PropTrack senior economist Eleanor Creagh pointed to changes in RBA governor Philip Lowe's monthly statement that suggest the RBA may be thinking about slowing the pace or pausing to assess their impact.

"The RBA trimmed its GDP growth forecasts and the statement accompanying yesterday's move signalled the Reserve Bank are not on a pre-set path, shifting to a more data-dependent stance and perhaps pointing to a return to 'business as usual' (25 basis point) rate rises from here," Ms Creagh said.

Ms Creagh said how high and fast the cash rate rises – and whether the RBA pauses at some point – will be determined by the economic conditions.

Ms Creagh expects the RBA will continue raising the cash rate target towards its estimate of the neutral rate - a level that is neither stimulatory nor contractionary - of around 2.5% to 3%, while monitoring the impact on household spending.

The Fletchers Group had a fantastic night on Saturday, celebrating our Annual Awards Night at the National Gallery of Victoria, for the first time since 2019. We look forward to sharing photos and video of the night on our socials soon!

Results. It's a Fletchers thing.