July 13, 2022 | Beckett Market Snapshot July 2022

With the new financial year well and truly under way, Melbourne was extremely quiet once again during July as many Victorians took their first proper winter break since 2019 to enjoy warmer climates either nationally or internationally, while others took advantage of the ski season more locally.

The property market also experienced its first winter season since 2019, with a large contingent of buyers and sellers focusing on holidays rather than transacting in the market. This factored into an extremely low number of transactions for July with 3,138 overall transactions and an auction clearance rate of 67%.

It is hard to ignore that conditions are markedly different compared to this time last year as we settle into a more balanced property market. Three quick interest rate rises, 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.

We are anticipating that more stock will hit the market in August as Melbourne thaws out from winter, and we return to our traditional Spring selling season.