9th September 2024 / Jeremy Desmier: Market Update | 7 & 8 September 2024

The Fletchers Group was thrilled to achieve a strong success rate of 70% for our clients, as we enjoyed some welcome glimpses of Spring sunshine during the day.

Over the weekend, we saw an incredible total of ten bidders competing at the auction of the beautiful federation home at 170 Rossmoyne Street in Thornbury. Located in a well-connected pocket of the thriving suburb, agent and auctioneer Nick Mylonas sold the property under the hammer for $1,860,000.

In Doncaster East, auctioneer Aaron McDonald fielded bids from five parties at the auction of 22 Newlands Crescent. Marketed by Robin Waterbury, the meticulously maintained home sold under the hammer for $1,700,000.

The Domain Group reports that houses are being snapped up quickly in a string of more affordable suburbs in Melbourne's outer east, as buyers scramble to purchase property they can afford. Homes in the City of Maroondah, which covers suburbs including Ringwood in Melbourne's outer east, have been selling the quickest, with properties listing for private sale spending a median 39 days on market in the six months to August.

Domain head of research and economics, Dr Nicola Powell, said houses were moving faster in more afforable areas, while premium locations experienced longer days on market, as buyers with tighter budgets look to lock in property before the end of the year.

"Stock is staying on the market longer, it's showcasing that buyer and seller pricing expectations not meeting one another...there will be buyers that really are keen to make that purchase and that urgency will rise among certain buyers," she said.

Powell noted premium homes could take longer to sell, because the pool of buyers was smaller, with days on market blowing out in some sought-after suburbs where sellers are reluctant to lower price expectations.

Despite this, the Domain Group's Forecast Report for the 2025 Financial Year shows that Australian home prices are forecast to rise over FY25. Although the pace of house price growth is largely anticipated to be slower compared to the 2023 calendar year and FY24, it will accelerate marginally for units in some markets.

Constrained supply is expected to be the predominant factor influencing property prices in the short term, leading to continued price increases across most cities during FY25, due to the scarcity of land, weak building approvals and high construction costs. At the same time, a growing population propped up by strong migration continues to be the wind in the sale of property price growth.

We're looking forward to another fortnight of busy auction weekends, before the quieter long weekend for the AFL Grand Final. If you need any real estate advice, please give us a call.