Buyer demand outweighs tight supply of turnkey and family homes 

Victoria’s real estate market remains resilient and optimistic, despite challenges brought about by interest rate rises.

After an expected slowdown through the April holiday period, it has bounced back in the final months of the financial year, with new listings up about 20.5 per cent month-on-month, according to CoreLogic data.

While the Buxton Real Estate Group has seen stock numbers improve, buyer demand continues to outweigh the supply of properties for sale, especially for quality family homes.

Buyers are active in the market, with Buxton offices in metropolitan and regional areas seeing strong numbers at open inspections. This demand has fuelled some outstanding results for four-bedroom properties, including those priced between $2 million to $3 million.

People are buying and spending top dollar, and if a property is priced correctly, there is no shortage of buyers who will act swiftly, as they are more price-savvy and educated on value. 

Modern family homes or older renovated houses in need of little or no work are in hot demand, according to Buxton agents.

There is strong competition for turnkey properties, with some sales surpassing expectations and obtaining exceptional prices. Buxton encourages homeowners to consider listing their properties for sale while stock supply is still low and strong prices are being achieved. 

As the market is difficult to predict in the next three to six months, sellers are well advised to jump in now while the market is hot.

While the first-home buyer market has been less responsive, it is expected to pick up again once a number of townhouse development projects are completed in the coming months.

As investors may be taking a back seat and withdrawing from the market, Buxton expects more investment stock to hit the shelves in the coming months.

Due to limited stock, the rental market continues to tighten, with a significant drop in available properties in the first half of 2023, compared to rental stock during the same period last year. The opportunity for investors is ripe, with rental demand at an all-time high. Properties are receiving three to four applications and achieving returns well above market value.

Buxton expects homeowners who are putting off a sale to find a window of opportunity in the coming months, which will bring more confidence and more stock on the shelves.