With the end of the year now rapidly approaching, this seems like the ideal opportunity to look back over the past twelve months to see what can be learned from a year that was more challenging than many Victorians anticipated.
If you cast your mind back to the start of 2024, there was a fair degree of optimism among homeowners in expectation of reductions to official interest rates. When these did not eventuate, market confidence was impacted. Furthermore, whilst we saw tight stock levels supporting prices at the start of the year, stock levels increased as the year went by, reinforced by the rising levels of ex-rental stock that were hitting the market. These conditions produced a tougher Winter for sellers, particularly in some lifestyle areas.
As a result of the slower Winter market, increased caution among buyers saw the Spring kick off on a less positive note than previous years. We did see more stock becoming available as Spring began, but this flow of new listings was more of a steady stream rather than the flood we often experience at this time of year. As I have mentioned in previous Market Updates, the most consistent element we experienced was the inconsistency between different areas and property types, making accurate forecasting quite difficult.
The fact is, for every tough campaign there has been a good news story to match, often on a similar property in a similar area. This has made the task of providing accurate advice challenging at times.
From a broader perspective, what we have seen throughout the majority of the year is what might be described as a two-speed market. Many buyers and sellers have responded to the higher cost-of-living and higher interest rates by becoming more conservative, only making major financial decisions when they become clearly attractive. On the other hand, those buyers and sellers who are in a more positive financial position, where the cost-of-living is less of an impost, have been able to respond to market opportunities with speed, producing some big results.
The results of lower competition can be seen in the auction clearance rates which have consistently averaged in the 55-59% range for most of the year.
Don’t forget that the most important ingredient in making plans for the year ahead is to get objective and experienced advice from Day One. Our team is here to help, so don’t hesitate to ask.
In the meantime, all of us at Ian Reid Buyer and Vendor Advocates would like to wish you a safe, relaxing and laughter-filled festive season, however you want to celebrate it. Our office will be closed from 12pm Monday 23rd December and will reopen on 9am Thursday 2nd January.
Best wishes,
Ben Reid

Market Update: December 2024
Author: Ben Reid - Manager VAA