September Market Insights
Posted by Buxton Lifestyle - 2 October 2023
Posted by Buxton Lifestyle - 2 October 2023
More owners came to the market in September, following a strong finish to the winter market. There was a rush to sell by early spring as owners hoped to cash in on improving home prices and market sentiments, Buxton Camberwell director Nicole Lismore said.
“August and September were busier than usual and owners are just getting on with selling their properties in a market with tight supply,” Nicole noted.
Latest CoreLogic data showed property values continued their upward trend for the eighth consecutive month in September. Melbourne had its first annual increase in house prices in 2023, marking a significant milestone in the market’s ongoing recovery. The start of the spring selling season saw a robust performance, contributing to the positive momentum.
New listings in Melbourne surged but strong demand from buyers saw prices continue to rise in September, the PropTrack Home Price Index showed. The strong demand can be attributed to a variety of factors, including the pause in interest rate increases, high jobs figures, overseas migration and the rental crisis.
Though stock levels have risen sharply since August, with five consecutive weeks of 1000 or more auctions weekly in Victoria, there was still an imbalance between supply and demand. “There are more buyers than sellers in the market,” Nicole said. “We see more buyers make offers prior to auction and many who missed out earlier due to the lack of stock and strong competition want to buy by the end of the year.”
Many Buxton offices reported demand was strong for quality family homes that were either renovated or in move-in condition. “These properties are moving quickly and selling for well above sellers’ expectations,” Nicole said. “We are seeing three to four buyers bidding or making offers, while inspection numbers are still healthy with 5-15 groups at each open.”
Another trend among buyers was the demand for more living spaces and flexible floorplans, Nicole said. “Buyers are wary of properties that need work, such as bathroom renovations, and such properties have seen a decline in value, unlike turnkey homes which have seen values rise,” she added.
On the auction market, she noted that the overall clearance rate of 75 per cent indicated a healthy or stable market. Properties are not being overpriced, with seller expectations more aligned with the market, Nicole said.
