Market updates from your local property experts

Gary Peer, Jeremy Rosens, Leon Gouzenfiter and Leor Samuel offer

What’s happening in the market?

JEREMY: It’s safe to say the sluggishness of late last year has given way to fresh optimism.

There are more people attending our inspections. More depth at our auctions. And more bidders – not only coming to our auctions, but competing fiercely for southeast Melbourne’s top homes.

But while buyers are returning, stock isn’t. And, right now, there are fewer properties coming up for sale than usual. However, this isn’t necessarily a drawback. In many ways, this lack of stock is actually driving the market and fuelling excellent results for sellers.

LEOR:

LEOR: With first-time home buyers sensing a discount –particularly after last year’s peak prices – they’re flocking, en masse, to the market. Accordingly, we’ve seen a rise in the popularity of villa units – particularly those in that firsthome buyer ‘sweet spot’ of $600,000 to $1 million.

With whispers that interest rates may be lowering next year, the mood is buoyant and positive. Buyers are sensing that now is the time, not a few months down the track. And, as we head into the winter months, we’re seeing that mentality reflected in a renewed, rejuvenated market.

What properties are in the hottest demand?

LEON: With the lack of supply we’re seeing, well… everything’s in demand!

That means competition has returned. And, as usual, it’s the same types of properties in buyers’ crosshairs: the family ‘turnkey’ homes that are ready to move into, and that don’t require further work – or further spend.

People want to cross the threshold, unpack their boxes, and live. Not renovate!

Plus, despite the recent spike in interest rates, many people out there still need to get on with their lives: who have a motivation, and a deadline, to buy. These people understand that rates may, and are likely to, be lower in the medium to long-term picture.

So, it’s only a short term bit of pain.

GARY: Apartments have surged back into the game. Over the last 12 months, they’ve been quiet. But now, we’re seeing a lot of first-time home buyers – keen to capitalise on government incentives, and foretelling interest rate stability – jumping back in.

Another reason for apartments’ newfound popularity?

Rent prices

With rents having ballooned – in some cases by up to 20% – renters with cash in the bank are reconsidering their positions.

And it makes sense. Why rent, when they can buy… even at a high interest rate?

This, of course, bodes well for rental providers and sellers. Rental providers are clawing back the costs of the recent compliance requirements, land tax increase, and inflation. While sellers are beginning to witness a rolling, rollicking wave of interest for their apartments at auction.

What’ve been this quarter’s standout sales?

LEOR:

LEOR: 30 Leura Street in Murrumbeena was what we call a ‘rare find’. It’s not often a family (rather than a developer) buys a plot of land, builds a home, and sells it – so we knew the auction would be hotly contested.

And it was. Two buyers went toe to toe, as the home sold for $2,745,000. It was the record for a residential home sale, in Murrumbeena, in the last 12 months.

Meanwhile, one suburb away in Carnegie, five bidders came to the table to compete for the 90s-style villa unit at 3/5 Mernda Avenue. The two-bedroom, one-bathroom unit – part of a block of three – sold for $851,000: a testament to the villa unit’s resurgent appeal.

GARY: We sold a home at 6 York Street, Caulfield South, which had been in the same family for more than 80 years, spanning three generations.

Looking north, to 18 Carinya Crescent in Caulfield, we sold a beautiful home – a build several years in the making – in one of the year’s most excellent and noteworthy results. I fell in love with this home (all six bedrooms and five bathrooms of it!) so it was no surprise to see it sell, for a spectacular price, on auction day.

LEON:

LEON: At 1-6/176 Jasper Road in Bentleigh, we sold a whole block of apartments – for the first time since 1970. Competition from four bidders combined to push the final price well over the $2,500,000 reserve – exceeding all seller expectations.

JEREMY:

JEREMY: In St Kilda East, a gorgeous three-bedroom home at 24 Jervois Street sold at auction for $1,500,000. While, further east, two bidders tussled over a home at 311 Orrong Road. It exceeded expectations: selling, at auction, for an impressive $1,900,000.

What other factors are at play?

GARY: We’re seeing an influx of buyers from Melbourne’s western suburbs, such as Point Cook. Going forward, we expect these buyers – attracted by the good schools, myriad amenities, and proximity to the city our side of Melbourne presents – to only grow in number.

LEON:

LEON: In Bentleigh, we’re experiencing a renewed burst for homes in the McKinnon school zone. We see it happen when interest rates go up; people buying homes where they don’t have to pay through the nose for private school. They might spend more on the home, sure – but they save big on education.

LEOR: Traditionally, fewer sellers tend to come to market in winter. This year, though – with April so compromised with Easter, school holidays, and a potential ANZAC Dayinduced long weekend – many sellers will wait until May to start their campaigns.

JEREMY:

JEREMY: That means May could be a bumper month. So, while the air temperature may be getting cooler, there’s no reason the property market has to follow suit!

GARY: Thinking of selling your home? Get in touch with your local Gary Peer & Associates agent today to request an appraisal.