11th July 2022 / Jeremy Desmier: Market Update | 9 & 10 July 2022

Across the combined capital cities, auction volumes have dropped to their lower since early February, down 4.5% from last week to 1,330 (excluding public holidays and the Federal election weekend). Once again, the drop in auction volumes will be partly due to school holidays.

Despite the quieter auction week across Melbourne, a number of properties sold above reserve over the weekend.

One of the properties that exceeded expectations was the attractive three-bedroom, two-bathroom, townhouse at 6/2 Vine Street in Blackburn. Despite a slow start, the home enticed six bidders to get involved for the opportunity to secure the home, which Auctioneer Ian van Eijk sold under the hammer under light rain.

In Canterbury, the semi-detached brick home at 2 Dorothea Street offered a location in the highly sought-after Hassett Estate with opportunity to extend in the future. The property attracted three bidders and sold under the hammer.

Boasting an attractive renovation, the single level, two-bedroom home at 38A Roberts Avenue in Box Hill South saw three bidders participate on auction day. Zoned for Roberts McCubbin Primary and Box Hill High School, Auctioneer Michael Richardson declared the property sold at $986,000.

REIV President, Richard Simpson, said that he expects things to remain quiet over the coming weeks, but that it was a good time for investors to re-enter the market as rents begin to rise again.

The impact of interest rate rises on house prices will largely be shaped by how high and quickly interest rates go up, and how high inflation reaches. It is important to remember that interest rates are low compared to historical rates, however a tightening rate cycle will impact our housing markets. Although interest rates are important, they are not the only factor influencing housing prices. Tax settings, banking regulation, population and income growth, and the responsiveness of new housing supply to growing demand all influence property prices.

So far, despite the interest rates increases, we have seen that well-located, well-presented properties continue to attract buyers, particularly with stock levels lower over the cooler Winter months.

Results. It's a Fletchers thing.