Auction sales have dropped off slightly this week with a clearance rate of 73% recorded in Melbourne, although buyers have more choice. There were 932 auctions held, with 681 selling, and 251 being passed in, 127 of those on a vendor bid. In addition to the auctions, there were also 370 private sales recorded over the weekend.
Consistency is still found in the inner suburbs with good access to public transport and other infrastructure, where A-grade properties receive solid competition. Properties which are either ‘move right in’ or ‘potential development sites’ have been selling strongly in these areas; but units have not received the same kind of demand.
One factor that might be affecting clearance rates is the trend of having many of the properties in the outer suburbs now switching to being put up for auction.
The Real Estate Institute of Victoria [REIV] reported the median house price data showing that in the September quarter, the city’s $649,000 median house price remained the same as at the end of the financial year, however the median apartment price was up slightly to $503,000.
For those of you who are not aware, we are excited to be attending the REIV Awards for Excellence this Thursday 23rd October. Our very own Kim Easterbrook has been announced as a finalist for Buyer’s Agent of the Year. Thanks to everyone who has liked and commented with support on our Facebook Page too, it means a lot.
Next weekend there is a record 1515 metro area auctions scheduled. A VERY busy week ahead!
A steady clearance rate of 74% was recorded this weekend in Melbourne. There were 843 auctions held, with 623 selling, and 220 being passed in, 116 of those on a vendor bid. In addition to the auctions, there were also 422 private sales recorded over the weekend.
As reported by the REIV, Melbourne’s auction numbers for the September quarter of 2014 have set a new all-time record. There were around 8,165 held across the city in the past three months. This is 15 per cent higher than the same time last year.
Meanwhile, October has seen the residential market calm down more than it has in the past few months, as a result of increased stock and smaller numbers of bidders competing at auctions. Only one to three prospective buyers are now bidding at many auctions, and the most prevalent competition is found at A-grade properties in superior locations. The “panic buying” of five or more bidders vying for the same property, that we were witnessing at the mid-year auctions, is now occuring less frequently.
You may have read Kim Easterbrook’s comments in The Sunday Age yesterday. Kim discussed how buyers are far less panicked than they were a few months ago, and that current prices are basically where they should be, as opposed to 10 per cent above where they should be.
With these fair prices in mind, we are very keen to see what results next weekend’s 983 scheduled auctions will produce. Have a great week!
The sunny conditions on the weekend provided a perfect setting for the Melbourne auction market. There were 680 auctions held this weekend across Melbourne, with 501 selling, and 179 being passed in (76 of those on a vendor bid) resulting in a solid clearance rate of 74%. In addition to the auctions, there were also 429 private sales recorded over the weekend. The month of October is estimated to host approximately 4,000 auctions, including two Super Saturdays. The REIV have reported that this level of auctions is higher than the 10-year average of 3,182 for the month.
Residential buyers have not been deterred by the recent warnings from the Reserve Bank about excessively rising house prices. In fact, there’s evidence that some areas of the Melbourne market are remaining steady.
The most hotly contested areas at auction on the weekend were the inner city, inner east and inner north. We’re seeing strong demand for period homes and redevelopment sites, and buyer competition at auction can be intense which is clearly driving up prices in these areas.
With price-growth remaining steady in many areas, except for the expensive pockets of Melbourne’s inner east, sellers are having to be realistic in their expectations of sales figures. Buyers will not pay more than fair market value of properties. A good sign for those looking for property in the coming months.
Next weekend, there is an expected 886 auctions to be held in Melbourne.
Melbourne has experienced its first bumper weekend in spring with 894 auctions held, and a clearance rate of 75%. 669 properties were sold at auction, with 225 being passed in, 104 of those on a vendor bid. In addition to the auctions, there were also 380 private sales recorded over the weekend.
Buyers are enjoying the increased stock levels after the winter shortages, and have come out to secure properties hoping to move in by Christmas. There were a large number of boilover auctions with over four bidders, and a good test of the markets depth for the spring selling season.
For buyers looking to secure a property this spring, don’t be discouraged by the media reporting on properties selling well above their reserve. There are still plenty of opportunities to be had with the new stock arriving on the market each week.
Next weekend’s AFL Grand Final will give the market a little rest, as there are only a small number of auctions expected. We are looking forward to the first weekend of October, for the next big Saturday!
Melbourne is heading for a total of 3,000 auctions for the month of September, more than last year’s total of 2,463. This weekend, there were 818 auctions held, with 617 selling, and 201 being passed in (91 of those on a vendor bid) resulting in a clearance rate of 75%. In addition to the auctions, there were also 368 private sales recorded over the weekend.
We’re noticing that buyers are shunning B and C-grade houses or units, stepping up the competition for A-grade preoperties. This trend is driving up prices in superior streets, as buyers are leaning towards being able to “move right in” instead of going for second-tier properties that may be unrenovated, on main roads or near industrial sites.
Well informed buyers recognise that some properties, based on their location or architecture, are more scarce. These A-grade properties have attracted multiple bidders at auctions, and in some cases, there has been fierce competition.
The decline in the Australian dollar last week, is also one to watch. If it falls below US85c, its possible that Australian real estate will be even more attractive to overseas buyers.
Many vendors who had planned to have an auction in September, are now going to market in October and November which will benefit buyers. A surge in property stock levels in late-spring will give buyers more scope to pick and choose.
The first weekend of spring did not disappoint, with higher numbers of properties up for sale. In terms of results, there were 683 auctions held this weekend across Melbourne with 524 properties selling, and 159 being passed in, 74 of those on a vendor bid, resulting in a clearance rate of 77%. In addition to the auctions, there were also 382 private sales recorded over the weekend.
There’s a perception that low interest rates aren’t the only factor pushing up Melbourne house prices, there’s also the buyers who have repeatedly been outbid at auctions, causing them to bid more aggressively at subsequent auctions. Hopefully this group of unsatisfied bidders will turn around in the next few weeks as more housing stock will become available on the market.
Quarterly figures released last week by RP Data gave a 6.4 per cent jump in Melbourne’s home values over winter. Interestingly, the largest improvements in value in 2014 has been with high-priced properties above $800,000.
From today, we expect to see a whole new range of properties arriving on the market and we look forward to seeing what’s available.
A total of 717 auctions were recorded this weekend, with 544 properties selling and 173 being passed in, 66 of those on a vendor bid. This resulted in a clearance rate of 76 per cent. In addition to the auctions, there were also 366 private sales.
The volume of auction sales in Melbourne over the past month has been up about 6 per cent on auction transactions seen in the same period last year. Buyers aren’t being deterred by prices, as evidenced by the growth of Melbourne’s median house price by 10 per cent in the past year, now topping $600,000.
With today being the first day of Spring, we can expect to see auction numbers ramping up substantially over the coming weeks. The increased stock will be a breath of fresh air to buyers, and will also be a good test of the markets depth.
Melbourne’s property market remains uneven despite the low interest rates and the opportunities they present. There were 613 auctions held this weekend across Melbourne, with 438 selling, and 175 being passed in resulting in a clearance rate of 71%. In addition to the auctions, there were also 340 private sales recorded over the weekend.
The variability of Melbourne’s auction market was again on display on Saturday. While some locations experienced “volcano” auctions, with five or more bidders, there were also several lacklustre ones attracting only oe or two interested parties. There is still evidence of uneven quality in the market in some areas, such as the east and inner-north.
The stimulus that had been provided by the sharp fall in interest rates over the past few years has now flowed through the market, allowing more opportunities for buyers in addition to a slight increase in stock levels.
Heading into spring, there is a lot of hope for more stock coming onto the market. There is an estimated 744 auctions due to be held next weekend, as we wrap up our final weekend of the winter.
Record numbers of homes have been sold by auction in Victoria this year. And winter has been busier than normal in Melbourne’s property listings. There were 611 auctions held this weekend across Melbourne, with 442 selling, and 169 being passed in resulting in a clearance rate of 72%. In addition to the auctions, there were also 386 private sales recorded over the weekend.
No one can deny that it has been a strong year for auctions in Melbourne. More than three out of every ten properties this year have gone to auction, whereas last year is was just over two out of ten. But could this mean that there will be fewer properties available over the spring? We are noticing that the number of properties becoming available for sale over spring is lower than previous years, which could make competition greater.
The clearance rates in Melbourne over the past four weeks has been increased slightly to an average of 74 per cent. And stock levels over winter have been healthy, with a higher percentage of homes going under the hammer than the same time last year. However with a gradual decrease in the numbers of properties coming onto the market, buyers will have to be more competitive to grab the keys to homes that tick all the boxes.
However, there is no cause for alarm. Just because the stock levels may be slightly lower, this shouldn’t cause rapid price growth, and we are expecting stock levels to improve over the coming weeks.
Melbourne’s chilly winter months are proving to be no deterrent for vendor’s hoping to sell, and it seems that buyers are continuing to provide decent numbers at auction (even on rainy days). There were 592 auctions held this weekend across Melbourne, with 431 selling, and 161 being passed in resulting in a clearance rate of 73%. In addition to the auctions, there were also 430 private sales recorded. These latest auction figures cap off July at about 17 per cent higher than this month last year.
The month of July has seen Melbourne hosting about 2,200 auctions, which is significantly higher than the 10-year average of 2,013 auctions. What could be causing this surge in offerings? Some vendors are trying to get ahead of the conventional wisdom that spring is the best time to sell, while buyer numbers are being fueled partly by the availability of cheap finance (particularly in the lower end of the market).
Properties within the 10 kilometre radius of the CBD continue to attract decent numbers of potential buyers, and the flow on affect from this is keeping other areas popular too. With winter wrapping up over the next few weeks, it will certainly be interesting to see what new stock is being offered prior to the spring surge in listings.
