Hi,
The Domain clearance rate improved this weekend resulting in a clearance rate of 70% on 604 auctions reported. 422 property sold at auction and 130 passed in. This is higher than the 65% clearance rate recorded last year.
The team has had a busy week purchasing properties and although there is a sense of confidence in the market, buying conditions still appear to be favourable to buyers. Open for inspections are busier than last year however many buyers have just started their property journey, researching the market, and taking their time to ensure they purchase the right property.
Lots of talk about an interest rate cut tomorrow, the four major banks are predicting that interest rates will be cut by 0.25%. There is a small minority of economists who believe interest rates will remain on hold due to the strong jobs market. We will know for sure tomorrow afternoon.
There is lots of speculation about what this will do for property prices. Even though we have higher levels of buyers circling at the moment, there is still an element of caution with some of these buyers and the market appears to be very price sensitive. An interest rate cut will likely start to motivate these buyers but I think it will take a second interest rate cut to really start driving the market. Whilst this is possible, the RBA will likely take a ‘watch and see’ approach before decreasing in the very near future.
The Melbourne and Geelong property markets are still catching the attention of interstate investors (local investors still quiet) with many viewing the market as ‘undervalued’. Local home buyers are very active, whether that be first home buyers, upsizers and downsizers. 2025 is gearing up to be a busier year than it was last year.
Have a great week!
Kim Easterbrook – Managing Director
