May 13, 2022 | Beckett Market Snapshot May 2022

Melbourne’s property market has witnessed many changes in May including the federal election, interest rate rises, the rising cost of living reflected by high inflation, and the continuing war in the Ukraine. Buyer interest for quality family homes still remains strong, but a fear of further interest rate rises has stirred up talks of a slowing market.

With that being said, auction clearance rates still averaged 71% in May, down slightly from 75% in April and 80% in March. Though this is a downward trend, we recognise that auction clearance rates averaging between 65-75% is still a strong market trend, and we are still transitioning from the all-time high rates recorded in 2021 which reached well into the 90th percentile.

With the market trending under more balanced conditions, the emphasis on quality becomes far more apparent. Buyers are certainly now more considered in their approach compared to the panic-buying conditions of 2021. The desire to purchase a compromised property is dwindling, and this is reflected in the current decline in auction clearance rates. Quality homes are still experiencing strong competition.