Monthly lot sales fall to a two-year low
The growth areas of Melbourne, Geelong, Ballarat, Bendigo, and Macedon recorded 1,359 gross lot sales in June - marking a sizeable 22% decline in activity from the previous month. This was also the lowest monthly volume of gross lot sales since May 2020. In both these periods, cautious purchaser sentiment became increasingly prevalent as buyers adjusted to rapidly evolving circumstances. Currently, successive interest rate rises, strong growth in inflation, and an increase in residential construction costs (for both labour and materials) are resulting in cautionary buyer behaviours. Many are now re-evaluating their buying decision, comparing what they desire in a new home to what is affordable given the rising cost of living.