Hi,
The Domain Melbourne auction clearance rate was 73% over the weekend with 749 auctions reported, 547 properties selling, 124 passed in and 78 were withdrawn. In comparison, the clearance rate for the same time last year was 60%.
Buyers braved the freezing conditions over the weekend and there were strong attendances at many auctions. Interestingly, we had four auctions on Saturday with two of them passing in, one selling exactly where it should have and the other was a runaway result. This is what we are witnessing all across Melbourne. Mixed results but most properties selling, even after it passes in. This just means vendors have needed to adjust their price expectations and meet the market.
However, we are noticing more and more runaway results and some sale prices have been very high. A two bedroom house in Albert Park sold $600,000 over reserve, another home in Williamstown sold $515,000 over the top of the quoted price range with six bidders, a house in Bayswater sold more than $260,000 over reserve with 7 bidders, a house in Frankston sold $260,000 with five bidders and the list goes on.
As confidence grows in the Melbourne property market, so does to the amount of buyers willing to transact, which has dramatically increased since last year. That being said, there are still a number of buyers who are sitting on their hands and waiting until next year to buy. My feeling is that these buyers might miss an opportunity as prices rise. Currently, we are seeing a mixed bag of results, some high prices but the odd good buying opportunity is still presenting itself.
Have a great week.
Kim Easterbrook – Managing Director
