A welcome return of confidence has settled over the market in 2024, fuelled by stable interest rates. Both buyers and sellers sense a shifting landscape, with many believing we may be nearing the end of the rate cycle. This newfound stability has encouraged buyers, particularly those seeking their dream family home on a sizeable block. They understand that delaying their purchase could lead to facing higher prices in the future. Sellers, especially those looking to upsize, also view this as an opportune moment, with calmer market conditions allowing them to confidently sell their existing property with the knowledge they can buy in a similar market conditions. 

The high-end market for premium lifestyle properties has experienced a slight dip in demand. Some high-net-worth buyers are adopting a wait-and-see approach, seeking improved business confidence or lower interest rates before committing. As a result, the number of luxury properties for sale has decreased, with some owners opting to delay their sale until the market trajectory becomes clearer. This has kept prices relatively stable, with only a slight decline rather than the significant drop some anticipated.

The family segment of the market, has remained steady with a healthy balance between supply and demand. Throughout 2024, we've witnessed a gradual increase in buyer activity, especially for properties offering ample space for growing families.

Investment strategies are changing in the Yarra Ranges, with some investors shifting their focus from traditional residential properties to explore alternatives like commercial real estate or short-term rentals.

Others are choosing to exit the market entirely. This shift is largely driven by increased costs such as land tax, interest rates, council rates and ongoing compliance requirements.

Construction activity in the Yarra Ranges has maintained a steady pace, with builders having a healthy backlog of work. Higher density townhouses remain a popular segment, with some impressive sale prices being achieved in Mooroolbark and Lilydale.