Market Report
Property Market Report: August 2023
1 August 2023
by Dee Pajevikj
There is a statue outside the State Library of Victoria of St George slaying a dragon. Perhaps we could raise a matching bronze in Federation Square of brave Philip Lowe slaying inflation. For, though he perished in the fight, he seems to have triumphed posthumously. Inflation dropped to 6% in the June quarter and is headed down. Most economists agree The RBA is unlikely to lift the cash rate any further to chase a defeated enemy.
Domain reports that capital city house prices have increased four times faster in the June quarter than in the first quarter of 2023, the most rapid price acceleration for two years. Melbourne’s house prices have increased due to the twin pressures of a robust restoration of migration, and nervousness among sellers about putting their property into an anaemic market, which created a shortage of stock. For this reason clearance rates are over 70% for the first time since late 2021.
It’s worth noting that the tail end of winter can be a good time for selling a property, because listings are weak and by beating the spring fever you can corner the crowds and make your house stand out, thereby achieving a very handsome outcome at auction.
The recent shortage of stock should ease somewhat soon as fixed rate loans taken by investors come to an end and they are required to pay the less favourable current money rate and thus decide to sell.
At Abercrombys we have been surprised and delighted by the number of requests for property appraisals we have been receiving recently, and we know a high percentage of these will turn into listings. This makes us confident in a very buoyant spring market this year. There is currently a particularly high demand for well-renovated properties. As a rule of thumb, the market is an intelligent animal that recognises value. It’s a mistake to try and fool it by cutting corners. Spending money on a premium renovation always pays off on auction day.
We’ve recently completed a number of pleasing off-market sales, particularly in the luxury segment of the property spectrum. Not infrequently it makes sense to sell unobtrusively without suffering the influx of what we might call “market tourists”, and we are the industry specialists at this discreet methodology. So if you are contemplating selling please give Abercrombys a chance to go beyond market expectations for you using our deep connections and unsurpassed knowledge of those suburbs to which investors and homemakers aspire.