Our Market - November 2024
As we moved through November, it became clear that buyer enthusiasm was waning, with fewer people attending inspections. Many buyers seem to have decided to take an early break, stepping back from the market as we approach the holiday season, the result has been a market with fewer active participants and, ultimately, less competition for properties.
Below is a snapshot of our local market performance for November, compared to the same time last year in brackets
Sold at Auction = 56 (64)
Sold Prior = 56 (28)
Passed in at Auction = 37 (16)
Withdrawn from Auction = 21 (12)
Auction Clearance Rate = 65% (75%)
Sold by Private Treaty = 81 (42)
Postponed Sales = 10
Despite a softer market, there have still been successful transaction, and in some cases, surprising outcomes. A-grade properties continue to show resilience, proving that quality homes in prime locations still attract solid interest, even in challenging conditions. A perfect example of this was the sale of 72 Brandling Street, Alexandria. Over a four-week auction campaign, we welcomed 56 inspections, received 19 contract requests, and registered 5 eager bidders. Despite the broader market slowdown, two highly determined buyers went head-to-head in a heated auction, pushing the sale price a remarkable $230,000 above the reserve. This sale serves as a powerful reminder that A-grade properties, particularly in desirable areas, remain in high demand, no matter the market climate.
It’s been a year of volatility for the real estate market. The first half of 2024 saw prices rise, but the latter half experienced a marked decline. Overall, it’s been a year of peaks and valleys, keeping both buyers and sellers on their toes. The market has remained unpredictable, but this also means there have been plenty of opportunities for those who were able to navigate the fluctuations. Below I have noted the monthly auction clearance rate in our local market, providing a gauge of how our local market performed throughout 2024.
February – 78%, March – 76%, April – 71%, May – 77%, June - 78%, July – 81%, August – 77%, September – 66%, October – 66%, November – 65%
As we approach the end of 2024, many in the industry are eagerly looking toward the year ahead. If the current economic pressures - high interest rates and inflation - persist, we may see the market continue its softening trend into early 2025. However, if interest rates begin to fall and the broader economic conditions improve, we could see a quick rebound in market activity. One crucial factor to watch is whether buyer numbers will return in force once the new year begins. Given that many buyers have already exited the market earlier than expected this year, we could see a sharp uptick in demand as 2025 unfolds. If the Reserve Bank of Australia (RBA) cuts rates in February, it could trigger a rush of eager buyers, injecting much-needed energy back into the market.
As we close out 2024, we want to congratulate all those who achieved their real estate goals this year. We also extend our heartfelt thanks to those who entrusted us with the sale of their properties. Your support has been invaluable, and we are grateful for the opportunity to assist you in your journey.
This is our final report for 2024; therefore, we would like to take this opportunity to wish you all a safe and joyous Christmas, filled with happiness and time spent with loved ones. Enjoy your well-deserved holiday break, and we look forward to assisting you with your real estate goals in 2025!