A-grade homes remain scarce.
Despite the increase in on-market housing stock during the spring, the scarcity of top-tier family homes in blue-chip areas remains a persisting issue, one we anticipate dealing with in the foreseeable future. Why? It's a straightforward equation: limited supply combined with rising demand due to migration means there isn't enough inventory to meet the market's growing need. In addition, vendors only sell when they can see suitable properties to move into are on the market. Therefore, with low visibility of stock, sellers don't sell, creating a vicious cycle.
Our insider information from our extensive network of real estate agents suggests that there will be a surge in available properties entering the market between now and Christmas. However, we expect many of these properties to be ex-investor stock or require renovation.
Many of the high-quality homes we're securing for our clients are off-market or being sold before auction. Engaging a professional in your property transactions has never been more critical.
Melbourne witnessed a 10% growth in listing numbers in September and a 46.2% increase in the volume of auctions. While Bayside remained steady in stock and prices, Stonnington has experienced strong growth for the first time in a while. This has been driven by a marked increase in quality stock on the market, which attracted an increase in buyer activity. You can learn more about our preferred areas within Stonnington, particularly Toorak, South Yarra and Armadale, in our latest market insight article.
KPMG's recent report on Australia's capital cities forecasts a 4.9% national house price increase over the next nine months despite auction fluctuations and interest rate hikes. They also predict a 9.4% surge in house prices by June 2025. At Infolio, we expect a temporary dip in buyer confidence in the coming weeks following last week’s rate increase. However, we anticipate the market for premium family homes to remain competitive throughout 2024.
My parting piece of advice.
If you're considering a purchase before the end of the year, you need to act quickly. Reliable sources indicate that new stock is imminent, but it will be swiftly absorbed due to the high demand for A-grade properties. Many of these sought-after properties sell before they hit the market or go to auction. Be proactive, informed and ready to ensure you don’t miss out.
If you’re looking to buy or sell this spring or planning for a 2024 purchase, contact us today for a free 15-minute discovery call, and we can advise you on the best timing and approach to ensure your transaction maximises your return on investment.
Managing Director
Infolio Property Advisors.
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