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.
Melbourne’s auctions over the weekend saw a slight increase in the clearance rate to 75 per cent which is 5 per cent higher than this weekend last year, on a higher volume of auctions. There has been an increase in homes going to auction from 14,000 to 18,000 compared to last year for the first six months of this year and the increase in volumes have not impacted clearance rates.
Melbourne’s new planning laws are to be rolled out by the 1st of July with the existing Residential 1 Zone, Residential 2 Zone and Residential 3 Zone being replaced by three new residential zones. These are:
Residential Growth Zone which is designed to enable housing growth and encourages the highest residential density and development.
General Residential Zone allows modest housing growth whilst still protecting the current neighbourhood character.
Neighbourhood Residential Zone is designed to restrict development and housing growth to preserve the neighbourhood character.
Councils such as Glen Eira, Boroondara, Port Philip, Bayside, Moonee Valley and City of Yarra have been requesting upto 70% of their suburbs be allocated to the Neighbourhood Residential Zone. Suburbs such as Kew, Hawthorn, Camberwell, Brighton, Sandringham and Black Rock are among some suburbs to get two storey height limits in place. Some suburbs have even had approved minimum sized lots of 400 square metres for subdivision.
If you are looking to purchase a property for development, it is important to research the new planning laws as they will most likely, affect your plans.
What an end to Autumn! Could this mean a strong winter in the property market? The number of auctions around Melbourne has soared in recent weeks, giving buyers more stock to choose from, and slowing down price growth. The latest results show a clearance rate of 73%, which is on par with recent weeks. There were 1,107 auctions held this weekend, with 806 selling, and 298 being passed in, 165 of those on a vendor’s bid. In addition to the auctions, there were also 455 private sales recorded over the weekend.
With the surge in listings in recent weeks, buyers are continuing to have the upper hand, and are willing to wait for the right property rather than rush in. This doesn’t mean that they’re not buying, there is simply so many properties to choose from that they are prepared to walk away if the price is not right. What does this mean for vendors? The market is remaining steady, and some vendors are being more realistic with their price expectations currently, as buyers become savvier.
As we’ve commented on in recent weeks, there is still a high demand at the top end of of the market (over $2 million). Particularly in prime streets within prime suburbs. Some suburbs experienced record sales on the weekend. A property in Glen Iris sold under the hammer for $3.47 million.
Winter is beginning, and we are expecting a tightening of new listings coming on to the market. With the long weekend coming up, we expect only about 250 auctions next weekend.
A clearance rate of 73% was recorded in Melbourne on the weekend, compared to 70% last weekend, and 69% on the same weekend last year. Of the 1,017 auctions held, there were 746 sold and 271 passed in, 149 of those on a vendor’s bid. In addition to the auctions, there were also 465 private sales recorded over the weekend.
Despite a large increase in listings, the weekend clearance rate performed strongly. Buying in suburbs surrounding prime locations is creating a ripple effect, changing the character of the Melbourne property market. Suburbs such as Glen Iris and Northcote both had large numbers of auctions over the weekend, including a range of $2 million-plus homes. Areas such as Ashwood and Ashburton are experiencing clearance rates of over 90% for homes in those areas.
The market doesn’t seem to be showing signs of slowing down as we head into winter, which is unusual for this time of year. Next weekend, there is expected to be more than 1,000 auctions held in Melbourne.
Could buyers be gaining the upper hand again in the Melbourne property market? There were 863 auctions were held this weekend across Melbourne, with 623 selling, and 240 being passed in resulting in a clearance rate of 72%. In addition to the auctions, there were also 455 private sales recorded over the weekend. These latest figures are showing a change in the market.
It’s becoming apparent that house price growth in the city is slowing, while the number of properties listed for sale is up. Family homes with three to five bedrooms in favoured residential areas are still achieving strong results, in a high demand market.
The auctions we attended on the weekend reflect these trends, with family homes acheiving fair value sale prices. The market is competitive, but fair. Buyers are also making decent offers for homes before auctions, which can be seen with the increase in private sales. The final two weekends in May will see an expected 2,500 homes go up for auction, and we look forward to seeing the results.
