Hi,
628 auctions were reported to the REIV on the weekend resulting in a clearance rate of 77%. 357 sold at auction, 124 sold before auction and there were an additional 432 private sales (a very large number). In comparison, the same time last year there were 843 auctions reported resulting in a clearance rate of 74%.
ABS released its CPI data for the month of July with promising news showing it has slowed and is at a rate 3.5% which is less than the 3.8% result in June. Still short of the 2% to 3% RBA target but it is certainly heading in the right direction.
Whilst too early for any RBA interest rate cuts, CBA, ANZ and NAB have lowered their interest rates paid on term deposit due to their predictions of rate cuts next year. CBA has also cut its variable interest rates for most new home loan customers. NAB, Macquarie, Westpac and CBA have cut its fixed rate loans with the subsidiary lenders following suit.
PropTrack Home Price Index released their national median home price for August showing Melbourne’s median house price declined by 0.18% (effectively remaining stable). But this is lagging behind Sydney, Brisbane, Adelaide with Perth experiencing the strongest growth at 0.79% for the month. The index did show that it appears that property price growth across the country has slowed and there is a feeling this will be the case moving forward until we see interest rates come down.
The auction of 62 Stockdale Street, Bentleigh East attracted a large attendance of 60 people. The renovated home was quoted at $1,500,000 to $1,560,000 prior to auction. There were three active bidders with the property declared on the market at $1,652,000 and selling at $1,657,000 with the remaining two bidders down to $500 bids.
A single level Guilford Bell architecturally designed home in Toorak sold for $1,200,000 above reserve. The auction of 184 Kooyong Road, Toorak only attracted two bidders, but two bidders that really wanted the property. The property was announced on the market at $5,200,000 and sold for $6,400,000.
Have a great week!
Kim Easterbrook – Managing Director