With residential real estate worth $11.4 Trillion in Australia and over half a million sales transacted each year, it’s evident that the love affair has not tempered.
It’s a buyer’s market – make the most of it
With median property prices softening across the nation, particularly in Melbourne, we definitely see conditions indicate a strong market for buyers.
This market presents opportunities for buying with prices still relatively flat and some opportunities for discounted properties, though we are still seeing quality properties perform. Indeed, in any market, great property always transacts well and holds its value which is one critical reason to work with a buyer’s agent – to ensure your property is one of them.
We have seen a softening market over the last few years due to various extraneous factors including interest rates and draconian property taxes. Irrespective, we have seen some of the most iconic, generational properties change hands in this time.
For example, despite the Melbourne market sitting quite flat, Coonac Estate in Toorak sold recently breaking all previous price records in the city!
Stock levels
Stock levels are still relatively low, down 10% compared with the five-year average and down 3.9% in Melbourne compared to the same time last year, so it’s important that you’re engaging with the local real estate agents to ensure you’re getting access to off-market and pre-market properties. On average we purchase 40% of properties that aren’t advertised online, so if you’re only relying on properties on REA/Domain you’re missing out on a significant portion of options.
Just because listings are down, doesn’t necessarily mean that properties aren’t selling, you’re just not seeing it happen due to the level of pre and off-market transactions occurring.
Impending rate cute
The recent rate cut is highly likely to create a flutter of activity.
Many of the banks expect there are going to be multiple rate cuts throughout 2025, totalling around 100 basis points in reductions. This would result in a huge boost in demand, borrowing power and buyer confidence, affecting the market accordingly.
Proactive not pressured
Overall being ‘proactive but not pressured’ is our motto. Preparation is integral to any successful search as it means that when the right opportunity is discovered, we’re able to act quickly and with conviction.