New realities and emerging trends: Navigating the 2023 property market
Despite recurring interest rates rises and plenty of stories in the media about wavering property values, the conditions that we are seeing reflect a return to stability within the market.
Jellis Craig CEO, Nick Dowling, said that he was witnessing a market returning to its normal rhythm.
Prices are stable, and we are seeing strong buyer activity. It’s a productive market and we are appreciating the return to reality.
Clearance rates remain very resilient. The last two weeks have seen strong auction clearance rates across the Jellis Craig group, averaging 80% compared to 74% for the rest of the market*.
Momentum is building and quality homes are performing best, with buyers looking for properties they can move into now. Recent standout results for the Jellis Craig group include 57 Maitland St, Glen Iris and 13a Grange Rd, Kew, both selling in front of big crowds with multiple bids on the last Saturday in February.
Overseas buyers are also stepping up their enquiries for quality family homes in Melbourne’s inner suburbs, another assurance that Melbourne remains a sought-after place to live post-COVID.
REA reports that buy searches from overseas property seekers in 2022 increased by 10%, compared to 2021, and, most importantly, were up 11% higher than pre-pandemic levels in 2019^.
Nick Dowling endorsed this sentiment.
We’ve seen international buyers flock back to Melbourne during the first few months of this year which has been a massive shift compared to the experiences of the last 2-3 years. The demand for this buyer pool is typically quality family homes on larger blocks with plenty of amenities nearby.
With just five auction weekends left until Easter and then the inevitable slowing down of listings over the cooler months and winter school holidays, it is no wonder that there seems to be a growing sense of urgency amongst active buyers. Buyer enquiry is up and this, coupled with limited stock levels, is contributing to healthy levels of competition on available homes.
There is no doubt that many vendors are achieving fantastic results right now. In saying that, each local market is unique, with its own specific idiosyncrasies. Speaking to your Jellis Craig property expert and attending auctions and opens in your area will help to give a complete picture of your local market.