11th April 2023 / Jeremy Desmier: Market Update | 8 & 9 April 2023

The Easter long weekend saw the number of homes taken to auction significantly reduce, with just 660 properties going under the hammer across metropolitan cities.

However, next week is set to bring a return in auction activity, with nearly 1,800 properties currently listed for sale across all capital cities. This marks an increase on last week's numbers and will be welcomed by many as a sign of stability in the property market.

The Reserve Bank's decision to keep interest rates on hold after ten consecutive increases is believed to have provided some relief for homeowners, lending an overall sense of security and certainty among buyers and sellers alike.

"The decision to hold interest rates steady this month provides the board with more time to assess the state of the economy and the outlook, in an environment of considerable uncertainty," RBA governor Philip Lowe said.

"The board expects that some further tightening of monetary policy may well be needed to ensure that inflation returns to target. In assessing when and how much further interest rates need to increase, the board will be paying close attention to developments in the global economy, trends in household spending and the outlook for inflation and the labour market."

The rapid increase in interest rates saw Australia's property market rebalance last year, with prices falling for nine months in most parts of the country.

But the latest PropTrack Home Price Index shows the trend looks to have reversed, economist Ms Eleanor Creagh said.

"Price falls eased towards the end of last year and are now moving higher again. Home prices at a national level moved higher in March by a modest 0.13% and are now 0.49% higher this year."

Ms Creagh said a limited supply of properties available for sale combined with elevated buyer demand is putting a floor beneath prices.

As auction activity continues to increase next week, it will be interesting to see how these changes impact the property market over time.

With an increase in auction activity, now could be a great time for buyers and sellers alike to consider their options when it comes to entering the property market. Please don't hesitate to reach out to your local Fletchers expert for any property advice.