Market Report
Property Market Report: May 2023
9 May 2023
by Dee Pajevikj
Many experts were surprised by the RBA’s decision to continue their campaign of interest rate hikes. Inflation seems largely tamed and people with home loans are hurting. It might pause the awakening market momentarily. But even the gloomiest economists agree that interest rates will be falling by next year.
Meanwhile, and in spite of what some consider the RBA’s overkill regarding inflation, the market has rallied with the news of the extraordinary wave of immigration that is planned. Prices increased in April as a result of rising consumer confidence and low stock levels. Industry experts are saying the market has already hit its floor. The ANZ bank modified its forecast this week from predicting a significant fall in Melbourne to a rise of 1% by the end of the year.
Across Melbourne auctions achieved a very healthy 78% clearance rate in the weekend just gone, which indicates a strong market, but also reflects a shortage of stock. Vendors have been waiting for signs the market is stabilizing, and these indications will bring them into the market, creating an increase in stock levels in spring.
And, amid all the gloomy noise the media has made lately about this industry, it shouldn’t be forgotten that Melbourne’s median house price is still 16% higher than before the pandemic began. And, as always, the blue ribbon areas in which Abercrombys methodology is so effective will lead the price recovery.
At present homes that are stylishly renovated are selling extremely well, being less unsettled by recent market downturns than other properties. Our discreet sales approach, matched with our revered market knowledge, will ensure you the best price for your property.