Hi ,

The auction clearance rate is remaining consistent with 746 auctions reported to the REIV.  472 properties sold at auction, 91 sold before auction and 183 passed in resulting in a clearance rate of 75%.  In addition to this there were 161 private sales.  The final clearance rate for last weekend was 78% on a huge 1,159 auctions.  The same time last year, the clearance rate of 77% on 757 auctions.

The clearance rate in the mid 70’s suggests we are in a balanced market, however it does feel a little different to that on the ground.  Stock levels are high, and new listings are continuing to be loaded online to levels that have not been seen for quite some time.  Whilst many vendors may not disclose the real reason for selling, but this partly could be to do with the increase in interest rates and unaffordability.  This also could be partly due to some vendors not wanting to hold off anymore and there is certainly a sentiment of ‘let’s just get on with it’ out there.

Whilst some auctions are competitive, some are not, many are passing in and selling immediately afterwards.  More times than not there are only one or two buyers circling a property and therefore a vendor will be more open to selling before auction.  Some ‘expressions of interest’ campaigns are also not selling at the deadline and are being extended out with price adjustments.  We are also seeing many properties sell ‘subject to finance’ and this is due to a lot of the current property buyers are new to the market and are still waiting on their finance approval.

So whilst the auction clearance rate looks like we are in a balanced market on paper, the feeling on the ground is that we are more in a buyers market than a sellers market (generally speaking).   My feeling around this though is it could be short lived.  There are a lot of buyers out there actively looking.  But they currently have a lot of choice and not a lot of urgency to buy.  If stock levels tighten again (which they are likely to do at some time in the future), then the market could easily shift from a buyers market to a sellers market.

The villa unit market continues to be strong due to its more affordable price point in the market.  8/2 Lisson Grove, Hawthorn is a well located but small (and dated) two bedroom villa unit and was quoted $700,000 to $750,000 before auction.  Three bidders tried to secure the property with the property selling $85,000 over reserve for $835,000.

9 Bendigo Avenue, Elwood sold before the expiry of its ‘expressions of interest’ campaign.  The sale smashed records for the suburb with the five bedroom, five bathroom, 8 car basement home selling for $17,050,000 far exceeding the previous house record of $10,000,000 set in 2022.

Have a great week!

Kim Easterbrook