Your Besser Guide to the Real Estate Market
For the first time in four years, interest rates have come down, marking a significant shift in the property market. While the rate cut was only 25 basis points, it has already started to influence buyer sentiment and activity.
The first weekend of opens and auctions following the rate decrease was a positive one. While the number of buyers inspecting properties remained steady, we noticed a shift in buyer intent—more buyers are now financially prepared and ready to act. As sentiment continues to improve, we expect our conversion rate from buyer inspections to buyer purchases to increase.
The big question now is: Will more sellers enter the market?
If supply increases at the same pace as demand, the playing field could remain balanced. However, if demand starts to outstrip supply, we could see property prices firming up.
At Besser+Co., we are already seeing more vendors listing their properties, and we will be watching closely to see how supply and demand play out over the coming months.
According to REB Online, Melbourne recorded 1,467 auctions, the highest weekly volume since late October 2024. Clearance Rates on the Rise – Melbourne’s preliminary auction clearance rate hit 72.1%, up from 70.7% the previous week—its highest level since mid-July last year.
CBA Head of Australian Economics, Gareth Aird, expects buyer activity to pick up in the coming months due to improved borrowing capacity and confidence from the rate cut.
CoreLogic Economist, Kaytlin Ezzy, believes house prices are likely to stabilise, rather than experience another sharp downturn, following this rate cut.
If you’re thinking about selling, the next few months could be an opportune time:
– Buyer sentiment is strengthening
– Borrowing capacity is marginally improving
– Clearance rates are climbing
As supply begins to rise, strategic timing will be key to maximising your sale outcome. If you’d like to discuss the best approach for your property, click on one of the banners below or reply to this email to book a time to chat.
