8th July 2024 / Jeremy Desmier: Market Update | 6 & 7 July 2024

We enjoyed a weekend of crisp winter weather, and a strong clearance rate of 80% for the Fletchers Group. Auction volumes are low due to the school holidays, with 1,747 auctions recorded across the country - the lowest count since the King's Birthday long weekend in June.

We saw three bidders compete to secure the charming, three-bedroom home at 15A Van Ness Avenue in Glen Iris. Offering multiple living zones across two levels, the home is exceptionally located for convenience, and was sold under the hammer by Andrew Mackintosh and the team at Fletchers Glen Iris.

Hidden away in a quiet garden complex, the single-level villa at 4/22 Harrison Street in Mitcham is within walking distance to schools, local parks and transport. Auctioneer Ian van Eijk fielded bids from three parties before knocking the property down to the successful bidders at $713,000.

The PropTrack Home Price Index shows national home prices lifted 0.18% to a new peak in June, despite recording the slowest pace of monthly growth since December 2022. More broadly, prices are up 10.14% from their December 2022 low, lifting 3.14% year-to-date to sit 6.55% above June 2023 levels.

Although the number of homes hitting the market this year has lifted, strong population growth, tight rental markets and home equity gains continue to bolster demand. Meanwhile, building activity remains challenged, resulting in the chronic shortage of housing being exacerbated by a lack of new construction.

In 2024, interest rate stability has sustained buyer and seller confidence, while the continuous rise in home prices is motivating many to overcome affordability challenges and transact with the expectation of further growth.

Australia's top economic forecasters expect the Reserve Bank to start cutting interest rates by March next year, taking 0.35 per cent off its cash rate by June. If passed on in full, the cut would take $125 off the monthly cost of servicing a $600,000 variable-rate mortgage, with more to come.

Inflation is expected to be back within the Reserve Bank's 2-3% target band by June next year, and to be close to it (3.3%) by the end of this year.

The upcoming weekend will see the winter slowdown continue, with around 1,500 auctions scheduled across the country and an uptick to around 1,700 the following week. If you need any assistance with your property plans, please give us a call!