Saturday’s weather, and Mother’s Day celebrations didn’t keep people away from attending auctions over the weekend, where we saw a 70% clearance rate recorded. There were 576 auctions in Melbourne, with 401 selling and 175 being passed in, 99 of those on a vendor bid. In addition to the auctions, there were also 452 private sales recorded over the weekend. The clearance rate has not reached higher than 70% since mid-March, while the number of properties up for auction remains high.

Last week’s Reserve Bank decision to keep interest rates on hold at a record low of 2.5 per cent, could see some areas of Melbourne reaping the benefits in property values. The interest-rate sensitive areas of outer-eastern suburbs and the inner-west are experiencing higher house-price growth than some wealthier areas of the city since late 2012.

These areas, particularly the inner-west are undergoing gentrification from industrial backgrounds to bustling villages which are popular with young families, solo buyers and investors. We’ve seen housing prices in areas like Seddon and Yarraville spike sharply in the past six months, and we believe that there is still more great opportunities to be had in these areas amongst others.

The Melbourne property market has been reawakened after the quiet long weekends in April, and with this comeback there is a bit of a reality check for sellers. There were 704 auctions were held this weekend across Melbourne, with 496 selling, and 208 being passed in, resulting in a clearance rate of 70%. In addition to the auctions, there were also 479 private sales recorded over the weekend.

The lower clearance rates recently could be a sign that buyers are willing to walk away from prices that don’t reflect fair market value, particularly in the mid-range houses and apartments markets. There are plenty of options to choose from in the B and C-grade property listings, and buyers are setting the pace for pricing. A-grade properties, which are typically well-located and well-presented are still being snapped up quickly at strong prices.

We are expecting favourable conditions for buyers in the coming weeks, with a few Super Saturdays on the calendar. There’s plenty of housing stock to choose from, and potentially the competition will be a little less fierce for buyers.

The property market is still showing consistent clearance rates but also producing strong results for some properties too. The weekend’s clearance rate was 66 per cent on 575 auctions. Last weekend, the clearance rate was 68 per cent and the year to date average is 69 per cent. There were 560 private sales and 780 auctions are expected for next weekend.

Over the weekend our Managing Director, Kim Easterbrook, featured in an article in the Herald Sun named ‘Boom Time in the Burbs’. Four of Melbourne’s suburbs have recorded their highest ever median prices, being Brighton, Northcote, Doncaster and Yarraville. The rise in the Brighton median price can be attributed to a stronger market which has strengthened the higher end sector. The 22 per cent increase in median price from 2012 to 2013 does not reflect an increase in prices by this amount, but has resulted from the increased results in the higher end market and not just the entry level properties in the area.

Northcote and Yarrraville increases have come at no surprise to us at all as we have seen an increase in demand by professional couples entering into the market. We are also seeing a rise in demand in areas such as Richmond to the same degree as Northcote and Yarraville, and we are predicting to see a rise substantial rise in Richmond’s median price for the June Qtr.

Population growth has also been a topic of discussion in recent weeks with the Australian Bureau of Statistics stating that Victoria has 94,800 new residents from September 2011 to September 2012. This population growth is one of the key drivers of capital growth in Melbourne.

The weekend clearance rate dropped but this was due to the volume of sales being very high, with the market still showing signs of strength. Of the 1,201 auctions reported to the REIV this weekend, 842 sold and 359 properties were passed in (184 of those on a vendor bid). The resulting clearance rate was 70%, which is similar to last week’s final result of 69%. Aside from the auctions on the weekend, there were also 424 private sales.

The first quarter of the year has seen record numbers of properties on the market, and higher than average clearance rates. It does appear with the choice of properties on the market, that auctions overall have become slightly less competitive than what they were a couple of months ago. We do expect May to produce a high volume of sales with 5 auction weekends for the month.

This weekend should be very quiet with auctions due to Easter with only 60 auctions scheduled.

The weekend clearance rate of 70% is on par with last weekends figures, and considerably more than the same time last year when it was 63%. There were 899 auctions reported over the weekend, with 629 selling, and 270 being passed in. In addition to the auctions, there were also 474 private sales recorded in Melbourne.

Vendors have been trying to get their properties sold before the Easter holiday period, so we are expecting the high auction numbers to ease off after next weekend. Demand for properties within 10-12 kilometres of the city is still high, particularly in the wealthy suburbs such as Balwyn, Armadale and Hawthorn East. In these areas, buyers have been attracted to desirable homes near prestige schools and within government school zones.

The market is producing healthy results, with buyers not getting too carried away as there has been plenty of properties on offer in the first quarter of the year. There is an expectant 1500 properties going to auction this weekend before a couple quieter weeks then full steam ahead into May which historically is a high transaction month.

Melbourne has experienced a record number of properties being listed for sale this month. There were 1,124 auctions were held this weekend across Melbourne, with 795 selling, and 329 being passed in resulting in a clearance rate of 71%. In addition to the auctions, there were also 452 private sales recorded over the weekend. These latest figures top off a massive month with 4,600 auctions held, which is 30% higher than the previous record month in 2008.

The inner suburbs are in high demand as the population grows. Buyers are keen to secure properties near transport and schools, which could result in rising house price growth in the inner suburbs.

Melbourne has outshone all other Australian cities for population growth since 2004. The city attracts over 25% of net overseas migration to Australia, as well as being the most desirable city to move to for interstate residents. With this level of population growth in Melbourne, it’s no surprise that there have been higher numbers of properties being listed for sale this year. What is surprising is the demand for properties priced between $1 million and $2 million. It seems that many previous first home buyers are now looking to step up into larger family homes.

March has capped off the first quarter on a high note for the Melbourne property market, increasing median house prices. With an expected 1,000 auctions to be held next weekend, will this trend continue?

Large crowds and a high average clearance rate are proving that 2014 is shaping up to be a big year for the Melbourne property market. A clearance rate of 75 per cent was recorded on 892 auctions on the weekend. There were 666 sales, and 226 being passed in, 104 of those on a vendor’s bid. In addition to the weekend auctions there were 438 private sales. With an average clearance rate of 72% so far for 2014, the market is performing better than the same time last year when the average was 67%.

Is this a sign of growth in the Melbourne property market? Well, we’ve been noticing that families are on the move into larger homes across all areas of Melbourne, which has resulted in more fierce competition at auctions. It’s not just the lower cost outer-suburbs which are being snapped up by families, but homes in the inner suburbs are also producing excellent sales results. Investors and downsizers are still contributing to the demand but when trade-up family buyers begin to compete for properties, it is a sign that the real estate market is settling into a period of growth.

Vendors may be trying to make the most out of improved buyer demand, but buyers are doing their research and are walking away from prices that don’t reflect fair value. Some auctions we’ve attended have had four or more bidders, but the resulting sale prices have not been too surprising based on the fair market values. It certainly is an interesting year for Melbourne property, and we’re loving being involved in it!

An expected 1,350 auctions will be held next weekend, making it the biggest auction weekend of the year to date.

Melbourne’s auction market is back in full swing again after the Labour Day long weekend last week. The clearance rate of 73 per cent on 837 auctions is higher than the same weekend last year, which achieved a clearance rate of 68 per cent on 832 auctions. This is a significant increase in the amount of auctions as well as the overall sale results compared to last year. In addition to these auction results, there were 389 homes sold privately on the weekend.

Approximately 3,500 homes have gone under the hammer so far this year, with activity levels higher than over the final months of 2013. Interestingly, the REIV are reporting a decrease in the number of private sales compared to the same time last year. This indicates that while the premium end of the market is doing well, the private sale market is showing signs of a slowdown.

Which areas of Melbourne would you think are showing the fastest growth in property values? It turns out that the gentrified areas of the inner northern suburbs such as Clifton Hill, Fitzroy, Flemington and Carlton North have property values growing at a faster rate than any other areas of Melbourne. RP Data reported last Friday that Fitzroy’s house prices grew by 37.7 per cent last year. While areas such as Hawthorn, Middle Park, Windsor, Malvern and Port Melbourne all had their median house prices rise up by 22 per cent to 33 per cent. We come to expect high-priced sales in some of these suburbs, however the inner north is definitely an area to watch in the Melbourne property market.

See below for a rundown on three auctions we found interesting on Saturday. Next weekend, an expected 1,110 auctions will be held in the Melbourne area.

Market Comment
Melbourne

3rd March 2014
The autumn selling season commenced over the weekend producing a clearance rate of 74 per cent on 1,094 auctions, with 812 selling and 282 being passed in, 154 of those on a vendor bid. In addition to the weekend auctions there were 402 private sales.

Approximately 2,400 homes have sold at auction so far this year, compared to 1,800 for the same time last year. With multiple bidders at auctions, and high clearance rates above 70% for February shows that buyers believe this is a good time to purchase property, despite some negativity in the overall economy. The Reserve Bank will meet this week for the second time this year, to determine interest rate settings for the coming month. While interest rates have been on hold since last August, when they reached an historical low of 2.5%, mortgage interest rates have been falling as banks compete for market share in a positive environment for home buyer activity. This sentiment was reflected in Melbourne as all auctions attended by Elite over the weekend were well attended, with multiple bidders, and some aggressive bidding taking place. See below for more details on the auctions we attended.

A clearance rate of 75% was recorded this weekend from 1,105 auctions, and the first Super Saturday of the year. In addition to the weekend auctions there were 347 private sales. Already for 2014, there have been over 1,000 homes sold by auction, which is a solid start to the year.

Last week, ANZ gave a positive outlook for the property market, stating that the entry hurdle for buyers has been significantly lowered by falling mortgage rates. The incentive to buy sooner rather than later has also been re-established by renewed growth in home prices. Their research found that the recent speculation of a housing bubble is untrue, and that the market is merely playing ‘catch-up’ as a result of improved affordability and the release of substantial pent-up sales demand in recent years. This is good news for buyers in 2014.

Next weekend will be the second Super Saturday of the year, with an expected 1,290 auctions.