Quarterly Property Market Update – April 2023
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Based on Reported Auction Results*
Low Autumn Auction Volume To Start 2023As a general rule, once March is reached in Melbourne, auction offerings climb above 1,000 per Saturday on a regular basis. However, not so this year as can be seen from the numbers above. Owners are not rushing to sell. People appear less inclined to move currently and investors are sitting tight. Success rates remain in the low to mid 60’s per cent range – the new norm. It’s a quite market. The property scene is becoming more tentative with buyers/money borrowers cooling their heels somewhat in a re-assessing mode. As mortgage rates increase the size of the mortgage repayments the resultant purchase price budget for that purchaser shrinks. We suspect buyers are looking for some stability in rates before venturing out and committing. Banks will also become warier in the current environment. Nonetheless, those that are looking to buy are doing so with fair gusto, as auction success rates are maintaining similar levels to the end of last year. As we have mentioned on a number of occasions previously, lower property offerings do not translate automatically into higher success rates. Equally, high volume does not mean lower success rates. How it might be seen to impact is where some prices achieved may be higher (or lower) because of the volume of market competition at the time. But this is not a measure of overall confidence, but simply a numerical consequence. Commentators are singing in chorus that rates are shortly due to stop rising. If this occurs. the tentative may resume foraging again and agents and buyers advocates will have more work to do in response 🙂
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