June 13, 2022 | Beckett Market Snapshot June 2022
With the end of financial year now here, many Victorians are excited to be taking their first proper winter break since 2019. This is an exciting time as many people head to warmer climates either nationally or internationally, while others take advantage of the ski season more locally.
Melbourne’s property market has finally stabilised and returned to a more ‘normal’ market after 18 months of unprecedented price growth and enormous buyer demand. This was of course due to an incredible desire for families to upsize their family homes or relocate for a change of scenery following the pandemic Covid-19.
The interest rate rise in June was the largest in 22 years, which combined with record high inflation has curbed the enthusiasm of buyers and ceased the ‘panic buying’ mentality displayed throughout 2020 and 2021. Buyer demand is still strong, albeit far more considered and focused on quality and turnkey properties. Compromised properties are now proving harder for agents to sell which is very common trend for balanced market conditions. The new trend witnessed this year is the lacklustre interest for properties that require renovations or building works due to the fear of the building industry and the uncertainty around increasing material prices.
Median house prices peaked in early 2022 at $1,125,000 in Metro Melbourne and have started to fall slowly, for the first time in a few years.
Auction clearance rates in Melbourne have continued to stabilise, averaging 69% in June, down from 71% in May, 75% in April, and 80% in March.
We are extremely grateful to have successfully assisted so many clients purchase their dream home or investment property during the last financial year. The team at Beckett would like to thank all our valued clients, partners, family, friends, and real estate colleagues for your ongoing support during the past 12 months. It is always a pleasure working with you all and we are looking forward to helping everyone achieve their property goals in the next financial year.