There was minimal auction activity over the long weekend as we head into the final two weeks of auctions before the winter hiatus.
Buyers are hopeful of a busier spring.
We are also hoping for a busier spring, but not necessarily expecting one.
To paint a picture of just how quiet this year has been compared to last year, I’ve pulled up some sales data from Stonnington:
In FY2022 there were 140 house sales in Armadale.
In FY2023 there have been 77.
In FY2022 there were 92 sales for houses above $3,000,000 in Malvern.
In FY2023 there have been 44.
In FY2022 there were 27 sales for apartments over $2,000,000 in Malvern and Malvern East.
In FY2023 there have been 12.
Volume has almost halved year-on-year for established homes in our market. It’s a staggering contrast.
It’s no wonder that competition has been so strong of late for desirable homes.
While demand has tempered only slightly, supply has plummeted.
This explains why prices have largely held up and even rebounded in recent months, in spite of the most aggressive rate hiking cycle Australia has ever seen.
It appears that, particularly in Stonnington, there are still more than enough buyers immune to interest rate rises to stoke demand in this low stock environment.
Simultaneously, it appears that, particularly in Stonnington, there are very few owners under enough mortgage stress to be forced to sell.
And why would this drastically change in the coming months?
It will take some time for auction volume to return to previous levels… Years, not months.
But any improvement in stock levels from here will be a welcome reprieve for buyers, who continue to wait and hope for a busier spring.
Feature Property: 4 Latrobe Street, Windsor
David Sciola 