Listings were slightly lower in April but this can be attributed to the multiple school holidays and the Easter break, along with Anzac Day. However, buyer activity increased significantly due to stable interest rates, allowing buyers to plan their finances better and gain a clearer understanding of their borrowing capacity. The market witnessed a preference for finished homes over land sales and unrenovated properties, driven by the high costs and uncertainty associated with building. Recent  failures with some of the larger home builders in Australia has also been cause for concern and left many excited new home owners in a very difficult place. May is expected to bring higher listing numbers as sellers aim to enter the market before the Melbourne winter sets in. 

Buyer demand has been rising lately, possibly due to the increasing cost of rent and limited availability of rental properties. With borders open and more immigration making demand high and rental prices higher,  buying a property has become a more attractive option for many. Confidence is growing in the market, leading to more competitive auctions and a recognition of the value in buying. The real estate landscape is showing signs of increased activity, and the coming months hold promise for the Melbourne market. 

According to CoreLogic's Research Director, Tim Lawless, the Australian housing market has reached an inflection point, with housing values stabilizing or increasing in most areas. Positive indicators such as auction clearance rates above average, improved sentiment, and steady home sales suggest a market shift. The imbalance between supply and demand, driven by increased net overseas migration and limited housing supply, has contributed to the positive trend. Expectations of the rate hiking cycle ending and the perception that the market has bottomed out further support housing demand. Despite interest rates remaining high, the market shows resilience and the potential for continued growth. 

We are excited to see the Melbourne real estate market in a more positive place and normalising but as discovered in May despite the brief pause in April we haven't quite come to the end of this tightening cycle just yet... The RBA has once again lifted the rates 25 basis points.  

If you would like more information about the current market or wish to discuss any property matters, please don't hesitate to reach out. We are here to assist you and provide guidance based on the optimistic trends observed in the market. 

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