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

Low stock levels, increased demand, and intense competition at auctions are driving a gradual appreciation in house prices. With multiple bidders vying for limited properties, many motivated buyers are making pre-auction offers to secure their desired homes. June saw a success rate above 90% at Fletchers auctions, with prices often exceeding their reserve.

The demand for residential property is expected to keep rising into Spring, which is a traditionally strong selling season. This is due to continuing factors such as migration, a competitive rental market, and growing confidence in the housing market. The limited supply during winter has created a sense of urgency among buyers. It is intriguing to note that as yet, not many people are capitalising on these favourable selling conditions, potentially forgoing the opportunity in a market that has become highly advantageous for sellers.

As we approach the halfway mark of winter, our focus turns to preparing for a pre-Spring market discussion in August to beat the expected influx of properties during the spring auction season. With high buyer engagement, now is an excellent time for vendors to sell (despite the cool weather)! While auctions have been limited in July, off-market sales still present good opportunities.

Over the weekend, our Fletchers Balwyn North team led by Suki Zhuang & Director Daiman Kane, oversaw a seamless campaign of 14 Walbundry Avenue in Balwyn North. A privileged address in the coveted Riverside Estate, where superbly maintained grand homes line the signature treed avenues, this elegant 5-bedroom, 3-bathroom home soared a quarter of a million above its reserve. The auctioneer on the day was Michael Rosano, who superbly conducted the auction in front of a large crowd who enjoyed complimentary coffees on a cold winter morning.

In Bentleigh East, Auctioneer David Jane & Director Sardeep Singh executed a flawless strategy to produce a wonderful result at 22 Molden Street. A corner block in the McKinnon College school zone saw this free-standing, 3-bedroom property be hotly contested amongst 5 bidders - well above its reserve price.

In rental news, 1 & 2 bedroom apartments are in high demand in the rental market as student migration increases and young people move out of their parents' homes following the pandemic. According to Belinda Bisogino, Department Head, there is significant competition for homes that are reasonably priced, especially ones that cater to remote work preferences. In terms of supply, Fletchers stock levels are currently at an all-time low due to investors exiting the market. This has created a situation where many renters are vacating properties, which in turn are being listed for sale.

Now is the perfect time to connect with a professional if you have any questions about buying or selling. As we transition into a new season, our team is refreshed and ready to assist you with some valuable pre-spring strategies.

Don't hesitate to reach out to us today!