Winter Market Report

It’s time to light the fire, grab your hot chocolate and cosy up with the 2023 Winter Market Report.

All true Melbournians know that while you might come to expect rain, hail and sunshine all in the space of a winter’s day (and any other season if we’re being honest) it looks like the frost that had set over the economy in recent times is finally starting to show signs of thawing.

It would be amiss to ignore that high inflation has made it difficult for many members of our community in recent years. However, the RBA Governor, Phillip Lowe, has foretold a light at the end of the tunnel as he is “confident the worst is behind us rather than ahead” –allowing many of us to start breathing a sigh of relief and begin looking forward to some of the pressure easing.

Outside of this, the Research Director for CoreLogic’s Home Value Index has noted that dwelling values have risen across the four largest capital cities, with the most notable gain to be shown in Sydney with 1.4%.

WELCOME TO THE WINTER EDITION OF THE MORRISON KLEEMAN PROPERTY REPORT.

Mr Lawless has put this rise down to a combination of two factors, including; low advertised stock levels and extremely tight rental conditions plus additional demand from overseas migration. “Although interest rates are high and there is expectation the economy will slow throughout the year, it’s clear other factors are now placing upward pressure on home prices”, Mr Lawless said.

With the March market movement, CoreLogic has noted that “advertised supply has been below average since September last year” whilst also showing that “purchasing activity has fallen but not as much as available supply” which is estimated to be roughly -7% below the previous five-year average in capital city sales.

Moving into May 2023, the national Home Value Index (HVI) has increased 0.5% following March’s 0.6% lift with Sydney leading the upswing. However, we are pleased to note that the four largest capital cities have all recorded a rise in home values over the past three months.

Mr Lawless again commented on this by stating “not only are we seeing housing values stabilising or rising across most areas of the country, a number of other indicators are confirming a positive shift. Auction clearance rates are holding slightly above the long run average, sentiment has lifted and home sales volumes are trending around the previous five-year average”.

At MK we are well aware that Melbourne’s property market can be as tumultuous as it’s climate, but as experts in weathering all types of real estate storms, we are here to provide advice and assistance for all members of our community who might be thinking of buying or selling.

So, if you’re wanting to come in from the rain and gain some valuable assistance with all your property enquiries and needs, you can contact the team at Morrison Kleeman to experience the MK difference today!