property
Interest Rate Expectations Shift Buyer Behaviour in Oakleigh
Anticipation of lower borrowing costs is prompting faster decisions among purchasers seeking homes across Oakleigh streets and suburbs.
How we reported this
Buyer inspections rose sharply in Oakleigh during June, with agents reporting a 22 percent increase in serious offers on properties listed below $950,000 compared with the same period last year.
The change follows months of speculation that the Reserve Bank will cut the cash rate by at least 50 basis points before December. Purchasers who delayed searches earlier in the year now face competition from others who have brought forward their timelines to lock in finance before any further tightening in lending criteria.
Activity along local streets and venues
Foot traffic at open homes on Eaton Street and near the Oakleigh Junction precinct has doubled since mid-May. Staff at the Oakleigh Community Bank branch noted a 35 percent jump in pre-approval requests between 1 May and 30 June. At the same time, listings at the Oakleigh Market Place development have moved faster than projected, with three townhouses under contract in the first week of July.
Real estate records show the median sale price for detached homes in the Eaton Street pocket reached $1.05 million on 28 June. That figure sits 8 percent above the March quarter average for the same micro-market. Units near the former Oakleigh Primary School site averaged $712,000, up from $665,000 at the same time last year.
Evidence from transaction data
CoreLogic suburb reports released on 3 July recorded 47 settled sales in Oakleigh for the June quarter, compared with 39 in the March quarter. Days on market fell from 28 to 19 across the same period. Auction clearance rates held at 68 percent despite a larger number of listings brought forward by vendors hoping to capitalise on renewed demand.
Buyers should review their borrowing capacity with lenders this week and register for alerts on properties that match their criteria before the next round of rate announcements. Those already pre-approved can move quickly on inspections scheduled for the coming weekend to avoid missing short-term opportunities.
This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.