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Save time using RE Logic to access data, appraise, list and sell properties.
Stay tune with RE Logic’s products and projects
As projected back on May 13th, the market has transitioned from a robust seller’s market to a more balanced one, maintaining price stability since July. The question now is: where does the market head from here?
Interest rates are posing challenges for many Australians, prompting some to sell their properties to manage their mortgages. Notably, there has been an increase in listings driven by individuals selling properties due to mortgage stress. Certain media outlets have even predicted a potential price dip due to the influx of available properties. However, our analysis, informed by both experience and data, suggests a different outcome. Rather than a downturn, the market appears to be quietly building momentum for an eventual upswing.
The Reserve Bank of Australia (RBA) has seemingly reached the peak of its cash rate, maintaining it for three consecutive months with the likelihood of further stability in September. This steadfast approach has cultivated positive sentiment in the market, consequently bolstering property prices.
Despite this, it’s important to acknowledge that Australia is still grappling with a housing crisis, a challenge that may escalate due to the expanding population and insufficient new housing supply.
An encouraging note lies in the resilience of Australia’s overall economy.
Taking a closer look at the property data for the period from August 1st to August 23rd, we’ve gathered sales data for houses and townhouses across 17 suburbs grouped into three categories.
Group 1: Forest Hill, Mitcham, Nunawading, Ringwood, Wantirna, Wantirna South, Wheelers Hill
Group 2: Ashburton, Camberwell, Glen Iris, Hawthorn, Hawthorn East, Malvern East
Group 3: Balwyn, Balwyn North, Doncaster East, Glen Waverley
Our analysis reveals the following:
Table 1. Auction performance of the three groups of suburbs (1 August – 23 August)
Suburb Group |
Auction Success Rate |
Auction Success on the Day |
Auction vs All Sales
|
Group 1 |
100% |
100% |
68% |
Group 2 |
98% |
98% |
84% |
Group 3 |
100% |
100% |
71% |
Comparing this with our previous analysis, it’s evident that more sellers and agents have opted for private sale methods, reflecting the softer property market. However, auction success rates remain notably high, underscoring positive buyer sentiment.
The data reaffirms our market assessment, indicating a solid level of demand despite elevated interest rates.
Considering the broader performance of the Victorian property market, our analysis of these specific suburbs, and the underlying economic fundamentals, we draw the following conclusions:
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