The Inner West Melbourne property market, much like the nation as a whole, was largely dictated by interest rate uncertainty this quarter. As the fallout from the consecutive monthly rises took hold, sellers that had no motivation or need to sell were reluctant to go to market. With a continued lack of stock over the last 3-6 months we are now in a position where demand outweighs supply, and a return of more auctions and multiple bidders.
Despite this downturn in supply, we did see an upward trend in off-market options, with over 250 properties presenting themselves. Though in the grand scheme of things this did not make a marked impact on the larger supply/demand issues.
Gone are the days of buyers bidding beyond their limits until the sale is made, replaced with a more considered approach and a strong awareness of their limits. However, with less stock options, there were certainly situations were higher budgeted buyers bid strongly on compromised properties to secure a purchase. If the past few years is any indication, when the true value of properties are exceeded 3-4 times due to competitive conditions, it sets in motion an upswing in the surrounding market.
Renovated properties were still in high demand due to the extended labour shortage and high build costs; Why do a reno when you can buy done? This principle saw prices in line with the peak of the market, especially in affluent suburbs like Essendon and Yarraville. This tends to have a flow on effect into surrounding suburbs, as buyers start getting outpriced.
- Essendon
- West
- North/West
As interest rates flatten out and both buyers and sellers realign to suit, consumer confidence will return. Though there are no absolute sureties, we do believe that the “bottom of the market” was hit in March. This quarter will see more favourable market conditions, with good homes in good locations achieving better results and auctions becoming competitive once again. This steadiness should filter through the remainder of the Inner West, bringing with it a more sustainable and continued capital growth.
Get in touch with Kelly to find out more about the Inner West/North market, or make an appointment to discuss your requirements and see how we can help you get into your ideal home sooner.
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