Our Market - July 2024
As we move through the heart of winter, the weather may have turned cold, but the real estate market has been anything but chilly.
Despite the seasonal drop in temperatures, the economic uncertainty surrounding interest rates, inflation, and the pressures of the high cost of living, our local real estate market has displayed a strong and resilient performance.
Please see the statistics below, providing a snapshot of the market’s performance in July (with the same month last year in brackets):
- Properties Sold at Auction: 53 (36)
- Properties Sold Prior: 28 (55)
- Properties Passed in at Auction: 6 (15)
- Properties Withdrawn from Auction: 13 (7)
- Auction Clearance Rate: 81% (81%)
- Properties Sold by Private Treaty: 37 (43)
Strong Auction Clearance Rates Despite Economic Concerns
While the overall market strength is evident, it's important to note that activity continues to be somewhat patchy. The uncertainty surrounding future interest rate decisions and the persistent concerns about inflation have contributed to a mixed performance across different property segments. One notable trend across our market is the strong buyer interest in 2–3-bedroom apartments and houses, particularly those priced between $1,000,000 and $2,000,000. This segment of property continues to attract considerable buyer inquiries and demonstrates a robust level of activity. Conversely, properties priced significantly below or above this range have seen relatively less enthusiasm from buyers.
The auction clearance rates this month have been consistent with those of July 2023, underscoring the market's ongoing strength despite broader economic uncertainties. This stability in clearance rates is a positive indicator as we approach the traditionally more active spring market.
The latest inflation figures for the June quarter 2024, released on the 31st of July, reveal an increase in the annual Consumer Price Index (CPI), which rose to 3.8 percent. This marks an uptick from the 3.6 percent recorded in the March quarter, which might heighten concerns among consumers that the Reserve Bank of Australia (RBA) might opt for a rise in interest rates during their August meeting. The outcome of this meeting, particularly any changes to interest rates, will likely have an impact on market dynamics as we transition into the spring selling season. Buyers and sellers alike are closely watching for any signals that could influence their decisions.
In summary, while the market shows resilience and strength, the variability in performance across different property types and price ranges highlights the importance of staying informed and agile. The next few weeks will be crucial as we anticipate the RBA’s decisions and how the market responds to them as we prepare for the spring selling season. Stay tuned for further updates as we continue to monitor these developments.
If you have any questions about the real estate market or wish to discuss your next move, please don’t hesitate to call. We are always happy to help!
Disclaimer: Please note all information contained in this report is merely our opinion, it should not be relied on or considered advice.