The recent pause in interest rate increases has fostered a sense of stability, easing pressure on homeowners and allowing buyers to re-enter the market with renewed enthusiasm. Looking at the broader picture, it's evident that Victoria may be nearing the bottom of its cycle. The prospect of future cuts later in 2024 is driving some buyers to act swiftly, fearing price hikes.

For investors, the stable interest rates present an opportunity to re-enter the market, while homeowners who previously held off selling are now capitalising on improved sentiment.

The construction sector is facing its own set of challenges. While building costs are showing signs of stabilisation, they remain a concern for some buyers, particularly those considering significant renovations or new builds. This has fuelled the ongoing demand for quality, turnkey homes as buyers prioritise convenience and stability.

This segment of the market is thriving, with insufficient quality stock to meet the current demand.

In Moonee Valley, there has been a shift away from high-density apartment builds, with many projects on hold due to reduced demand for apartments. Instead, savvy developers are focusing on building high-end properties, often on individual blocks, to cater to the demand for quality residences. Buyers are willing to compromise on larger land allotments in exchange for premium, ready-to-move-in homes.

The inner-city fringe of Kensington is seeing a similar trend towards completed properties. However, Kensington's appeal as a vibrant, well-connected suburb is likely to attract returning residents seeking urban living now that pandemic restrictions have eased. This will likely lead to increased interest in apartments and townhouses as consumer confidence improves.