Quarterly Property Market Update – October 2022
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Based on Reported Auction Results*
Auction Successes StabilizeAuction success rates – the barometer of real estate health overall, has stabilized in the Quarter just ended. Rates staying north of 60% from late August and into September is a modest but meaningful improvement on the June/July levels which sat in the mid 50’s percent area. The present figures suggest that values in Melbourne have largely stood still, halting for now a downtrend.. Interest rates hold the key and as they appear destined to continue higher in the short term, prices may continue under some pressure; albeit perhaps only modest? A counter weight to the interest rate situation is the improving outlook for buying returning from overseas sources. The pandemic may be reaching its end according to world authorities and this may see a resumption of immigration and real estate buying activity. Long overdue, some would say. As discussed previously, the conventional house sector of the market continues to outperform the apartment and “subdivided” sector. Land is king. What is destined to become more and more embedded in a buyer’s critical decision-making, is the dividing choice of location versus type of property desired. A house on a block of land will become relatively more and more expensive to the flat/townhouse choice. Living “close-in” on a budget means buyers are forced into a narrower selection of options: houses less likely to be one of them. Volume in auction activity is slowly and predictably picking up as spring gets into gear. Spring and autumn are always the high volume seasons. As we have commented on previously, higher volume will not impact on success rate. Success rate is entirely dependent upon sentiment, not volume of offerings.
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