July Market Insights

Momentum builds as the spring selling season approaches.

A promising month for Victoria’s real estate market is boosting confidence among buyers and sellers. A healthy and predictable market will allow all parties to prosper.

Auction clearance rates remain stable, just shy of 70% overall, compared to the 56% at the same time last year, according to CoreLogic data.

Buxton offices recorded stronger results this winter market so far, with several offices reporting a 100% clearance rate in June. As a whole, the Buxton Group notched 90.1% clearance rate mid-year.

The auction market exceeded expectations in many sought-after suburbs, with some listings attracting as many as 10 to 12 bidders.The robust demand extended from metro Melbourne to the city’s outer suburbs and further into regional areas.

Looking forward, we move our focus to the traditional spring selling season. Given the new found confidence in the market and stability of Auction clearance rates, more and more clients are entertaining the idea of placing their properties on the market.

As we prepare for an increase of opportunities to become available across the board, the big question on everyone lips is “will buyer demand be able to keep up with supply?”

The overall sentiment in the market is that we are nearing the end of the current interest rate cycle and whilst fixed rate mortgages maturing remain prevalent, the worst of the property correction is behind us. As a result the motivation in buying now opposed to waiting is front of mind for buyers returning to the market.

The rental market in the first quarter of 2023 witnessed tenant demand outstrip supply with rents in many suburbs returning to pre pandemic levels. This was a welcomed relief to many rental providers struggling to keep up with rising interest rates.