What’s happening in the market?

Leor: We’re still transacting really well. In the week leading up to Christmas, we saw a big, late push to auction – as many buyers, knowing a good deal when they saw one, turned out in force. 

That said, the continuing interest rate hikes mean buyers are playing it safe. They’re stretching less for those dream properties – and sticking more to what they can afford.

Leon: Agreed. We’re seeing a lot more ‘three-quarter moves’, where buyers opt for a home worth around three quarters of what they could spend. Basically, people are buying to their budget – not their aspirations.

For our sellers, family homes in particular are performing well. And, as ever, buyers are ravenous for turnkey properties that are ready to move straight into. Established real estate is still achieving excellent results – and is likely to continue to do so.

Gary: We’re also seeing a strong surge of interest in properties that are modern, but not brand new. Before, buyers were more selective around these types of homes. But increased construction costs, and uncertainty about the stability of builders, have led to a reluctance to build – and even to substantially update or renovate. Which means those four-star homes are suddenly at the top of the shopping list.

Land sales have slowed, too. While land used to attract buyers in droves, the challenges of holding and building on it has weakened its once-irresistible pull.

 

What seasonal factors are at play?

Leon: The summer allows people to take a breather. To reset, reassess, and re-evaluate whether it’s time to downsize or rightsize. This then leads to a re-emergence of people wanting to finally make their move – and injects fresh life into the market.

Jeremy: December is helter-skelter. With the forced closure, decisions are made quickly; so homes sell quickly. We see a similar effect in February, because there’s a forced closure from Christmas until the end of January. Come February, that extended inactivity compels buyers to surface again – and the market to boom.

 

What are some of last quarter’s standout sales?

Leon: 21 Begg Street – an elegant, expansive home in Bentleigh East – sold for $1,601,000, contested by five bidders at auction.

Jeremy: A beautiful apartment at 9/273 Orrong Road attracted five bidders – surpassing all pre-auction expectations by a mile. Other exceptional results included St Kilda East’s 123 Hotham Street and 259 Orrong Road.

Leor: 1317 Glen Huntly Road in Carnegie. A semi-detached period home with a modern extension, its blend of convenience and class drew six bidders in a fizzing auction. It sold for $1,297,000.

Gary: 43 Fitzgibbon Crescent, a 5-bedroom, 4-bathroom home in Caulfield North, was a breathtaking property. It sold for an undisclosed price at a fiercely competitive auction.

 

Any changes to the local infrastructure that have affected the market?

Gary: A large, impressive new supermarket has just opened in Caulfield Village, opposite the racecourse – and, as we know, supermarkets are where growth starts. As that pocket develops with restaurants and cafes, it will become a vibrant community hub – auguring well for Caulfield homeowners and residents.

 

What are your predictions for the coming months?

Leor: With the rental market picking up, even sellers who haven’t achieved their desired price can still see strong returns on their unsold property.

Our Property Management team always go above and beyond to provide excellent service – and we expect our landlords to continue achieving standout results in 2023.

Leon: With the world now open for business, we’re going to see a significant amount of immigration. People are moving to Australia, settling in Melbourne – and they need places to call home!

Jeremy: With certainty, people will come back to the market. After COVID-19, it was freefall upwards, then freefall downwards; recently, it found its level.

Then, inflationary pressure and interest rates struck, which created uncertainty. But once talk of inflation dies down, buyer confidence will come alive. This should stimulate activity – and give the market a push in the right direction.

Gary: We’ve seen more and more auctions being passed in, then selling immediately afterwards through post-auction negotiations – and this trend is likely to continue. Of course, this means allowing more time to negotiate post-auction. And fortunately, we’re a company with a wealth of top-tier people and resources.

We also have that personal connection with our local community. This has allowed us, even in uncertain times, to stand alongside our sellers – while holding the hand of the buyer (someone who is most likely familiar to us already).

It has, and remains our priority to, support both parties through a transaction. To meet the buyer’s needs – while helping to secure the best possible price for the seller’s home.

 

Thinking of putting your property on the market? Get in touch with your local Gary Peer & Associates agent today to request an appraisal.