Hi ,

Lots of auctions over the weekend in Melbourne with reports of confident bidding and increased buyer activity.  According to Domain, there were 737 auctions reported resulting in a clearance rate of 70%.   The same weekend last year produced a clearance rate of 59%.

As we predicted, buyer activity in Melbourne has risen but stock levels have not.  There is a lack of quality properties on the market and generally stock levels are low.  This is not unusual for winter and we anticipate that to continue on until after the school holidays.  Some vendors will be waiting to see evidence of property price growth in Melbourne and stronger clearance rates before putting their property on the market.

First home buyers are very active, as too is the ‘bank of mum and dad’.  I missed out on securing a villa unit yesterday in the south east that had six offers on it (sold prior to auction above the comparable sales).  Some good quality apartments in the inner city ring are also getting snapped up quickly with multiple offers and also are attracting multiple bidders at auction.   Some buyers are feeling the pinch from higher interest rates and to enter into the property market, they are seeking entry level properties in quality suburbs.

The family home buyer market is still going strong (and quality family homes have been since Covid).  A Fasham Builder home was under competition in Malvern on the weekend.  The three bedroom, two bathroom, single level home on 696 sqm of land was quoted at the start of the auction campaign for $3,200,000 to $3,500,000 with the quote range lifting to $3,650,000 prior to auction.  The property was announced on the market at $3,660,000 and sold for $4,000,000.

The big 4 banks have all predicted more interest rates to come but Westpac last week, announced they are predicting 4 interest cuts over the next 12 months.  If this happens, this will likely add more pressure to property prices, particularly in Melbourne as the property market here has been so flat for many years now and is now one of the most affordable cities in the nation.

Have a great week.

Kim Easterbrook – Managing Director