11th December 2023 / Jeremy Desmier: Market Update | 9 & 10 December 2023

As we inch closer to the end of the year, Melbourne experienced another weekend of wet weather, forcing most auctions indoors. This didn't deter buyers however, particularly after a pre-Christmas reprieve from the Reserve Bank, with interest rates left on hold at their last meeting of 2023.

Over 1,000 auctions were schedule in Melbourne, with the Domain Group posting a clearance rate of 57% from those reported. The Fletchers Group was thrilled to achieve a solid 68% success rate for our clients.

Over the weekend in Box Hill South, two bidders competed to secure the fashionably renovated, two-bedroom home at 1/18 Edinburgh Street. Offering an inviting front garden and convenient location, the home was sold under the hammer by Partner & Auctioneer, Stefan Cook, for $824,000.

In a peaceful, Hays Paddock locale, the three-bedroom family home at 1/171 Kilby Road in Kew East saw three bidders compete. Boasting beautifully landscaped gardens and easy-living floorplan, the property was sold under the hammer by Senior Associate & Auctioneer, David Taylor, for $1,564,000.

With the rain refusing to let up, the auction of the neat and modern townhouse at 6 Collared Close in Bundoora was held indoors. Three bidders participated to secure the first-class property marketed by Director Tim Yu, before being sold under the hammer by Partner & Auctioneer, Sarah Lowry, for $764,000.

On Sunday, four bidders saw value in the spaciously designed, five-bedroom home at 54 Olympus Drive in Templestowe Lower. Marketed by Director Aaron Zhao, the property boasted both formal and informal living zones and private, rear-gate access to Aquarena. The home was sold under the hammer by Director & Auctioneer, Jason Salan, for $1,371,000.

We have seen the property market make a strong recovery in 2023, with sales up on last year and capital city prices at an all-time high. PropTrack reports that despite 13 rate rises over the past 18 months, reducing many buyers' borrowing capacity, sales volumes are up by 15.5% on the same time last year. Auction rates have also exceeded last year's, with an 18% increase seen over the past four weeks, compared to 2022.

The spring selling season was hot this year, and the fast recovery shows how resilient the Australian property market is, despite the higher interest rate environment. The PropTrack Property Market Outlook expects further price growth in the coming year, albeit at lower levels, with strong demand for housing and limited stock set to continue to drive up sales and prices.

The decision to hold the cash rate steady in December will maintain both buyer and seller confidence, with PropTrack senior economist, Eleanor Creagh saying, "property prices have defied expectations and home values have remained resilient to higher interest rates this year…prices are expected to continue rising, though the pace of growth will continue to slow."

This coming weekend will be the last auction weekend of 2023! Many potential vendors are already making plans for an early 2024 sale, with Easter falling early next year. Get in touch to discuss a sales and marketing strategy today.