Hi,
There were 515 auctions reported to the REIV over the weekend resulting in a clearance rate of 77%.  277 sold at auction, 120 sold before auction, 1 after auction and 117 passed in.  In addition there were 114 private sales.  In comparison, the amount was much less for the same time last year which had 701 auctions resulting in a clearance rate of 76%.
The Domain House Price report was released last week showing that Melbourne’s median house price increased by 1.7% over the June-24 quarter to reach $1,068,805 which is the fastest jump in property prices in two and a half years.  This is also the first time in four years that Melbourne has seen stronger house price growth than Sydney.
This mostly has come from the middle and outer ring suburbs where the more affluent suburbs have taken the hit and some even experienced negative growth, according to the Domain House Price Report.  However, this really comes with no surprise as rising interest rates have decreased budgets and these days many home buyers are rating location as less important than the actual house itself.
Unit prices decreased by 1.7% which is no surprise due to the amount of landlords that have opted to sell their properties.  The price gap between houses and units continues to widen with houses now costing 92% more than the average unit.  With this gap widening, budgets declining, and construction slowing, surely it is only a matter of time before the buyer pool for these type of properties increases and there could be some catch up capital growth to come in the future.
Auctions were hit and miss over the weekend with some only managing to attract one or two bidders and others either having no bidders, or selling well under competition.  It was a mixed bag.
An interesting runaway result in Brunswick on the weekend at 61 Donald Street, Brunswick.  This very well located pretty house in need of a renovation on large land for Brunswick of 637 sqm of land attracted seven bidders at auction.  The first bid was above the price range at $1,520,000 and the property was announced immediately on the market (auction reached its reserve).  The property sold for $1,890,000.
Have a great week!
Kim Easterbrook – Managing Director