The clearance rate of 81% that was achieved in Melbourne over the weekend is the highest clearance rate result since April 2017. This demonstrates we have a shortage of properties on the market and entering into a seller’s market. This and some strong sales results should hopefully be enough to convince vendors to put their properties on the market.
Of the 496 auctions (considerably lower than last year), 331 sold at auction, interestingly 71 sold before auction (which is much higher than it has been for quite some time), 1 after auction and in addition 193 private sales.
We should see some new auction campaigns starting this week in preparation for auction weekend – 21st of September, but next week there will be very few new listings due to it clashing with Grand Final weekend. The week after though, Spring campaigns will commence with the expectation of a very active couple of months leading into Christmas. The rise in stock levels should balance out the clearance rate over this period.
Congratulations to our clients who purchased this week. We purchased two off market properties, one private sale and one at auction in varying locations over Melbourne.
Enjoy the sunshine this week!
Kind Regards,
Kim Easterbrook and the team at Elite.
Clearance Rates
Melbourne | 26 August 2019
This week: 496 Auctions | Clearance: 81% | Last Year: 59% [source: REIV]
3 Wight Street, Kensington Sold for $1,063,000
This very well located two bedroom period home in good condition with the upstairs extension already completed proved popular, attracting four bidders at auction. The property was quoted at $880,000 to $950,000 prior to auction. The auction started on a vendor bid of $800,000 with a genuine bid quick to follow at $890,000. The property was announced on the market at $950,000 and sold for $1,063,000.
85 Rathmines Road, Hawthorn East Sold for $2,351,000
An unliveable, renovators delight with a stunning facade was in demand with buyers attracting six bidders at auction. Due to the location and the street presence, the bidding was fierce and the property sold for $471,000 over its reserve. The property last sold for $402,000 in 1996. A solid result for the vendor as the house needs structural and cosmetic updates to lift it to its full potential.
31 Rodney Avenue, Coburg North Sold for $940,000
Updated homes on over 600 sqm, under $1,000,000 are scarce in Melbourne and before too long they will become non-existent. Over 150 people attended this auction of the three bedroom, two bathroom home. The property has a cemetery located at the end of the street which can deter some buyers. However, it did not seem to prevent strong bidding from six parties to sell for $100,000 over its reserve.
Good morning everyone!
The clearance rate hit the highest point it has for quite some time achieving a rate of 79% on 443 auctions. However, it is important to note that this time last year though there were 742 auctions over the same weekend demonstrating that stock levels are considerably down. Buyers will certainly be welcoming the higher stock supplies coming for Spring. The clearance rate for houses was 81% and units 78%, in addition, there were 158 private sales.
It seems the confidence in the market is now spreading across all segments of the markets. First home buyers, investors and downsizers were already active but also the higher end of the market is showing signs of recovery. The top end is usually the last segment of the market to recover in a downturn with many higher end properties being auctioned on the weekend having active bidding rather than passing in for negotiation.
Buyers thinking of getting into the market should consider doing so in Spring when we should see the market balance out before the amount of properties on the market decrease for the Christmas period. The first lot of properties being auctioned for Spring will come onto the market in the next few weeks.
Have a great week and stay warm.
Kind Regards,
Kim Easterbrook and the team at Elite.
Clearance Rates
Melbourne | 19 August 2019
This week: 443 Auctions | Clearance: 79% | Last Year: 58% [source: REIV]
36 Regent Street, Prahran Sold for $905,000
One of Prahran’s most affordable homes went under the hammer on the weekend attracting a lot of interest from young couples. These buyers are a strong segment of the market due to most of them having two good incomes and not having the expense of a family as of yet. Three bidders pushed this property $55,000 over its reserve.
19 Sargood St, Toorak Sold for $7,050,000
Twelve months ago this property would have passed in at auction with likely no bids. Over the weekend it attracted two bidders and selling $400,000 over reserve. There are limited amount of buyers at the higher end of the market so achieving two strong bidders at this level was a very good outcome for the vendor.
12 Bathman St, Fitzroy North Sold for $1,275,000
Another renovators delight in the west smashed reserve on the weekend with this unliveable house selling $90,000 above its reserve. Three bidders tried to secure the property that not only was unliveable but backed onto the train line. An extensive restoration would bring this beauty back to its former glory. The property sold for $800,000, above its reserve of $710,000.
Good morning everyone,
The cold blast did not keep the buyers away on the weekend with big crowds at auctions being reported. The clearance rate remained steady at 76% on 382 auctions. 244 properties sold at auction with 45 selling before auction. 46 of the 93 properties that passed in, passed in on a vendor’s bid. Interestingly, the clearance rate for both houses and apartments/units were both 76% which shows an improvement of the amount of apartments/units sold over the weekend. In addition, there were 138 private sales.
As the market improves, we are seeing more properties that not only have vendors with high expectations of what their properties are worth but also properties selling well in excess of their reserve prices.
Properties in need of extensive renovations traditionally can struggle to attract multiple interested parties have been performing well at auction. This is the result of low stock levels but also buyers wanting to live closer to the city with limited budgets. These buyers are willing to accept a lesser property for a better location and do the work overtime to fix it up.
We have five more weeks before we enter into a short lull in the market due to school holidays and sports finals. We then enter into the silly spring season in which we should be active due to higher confidence in the market, lower interest rates and more properties on the market.
Have a great week and stay warm.
Kind Regards,
Kim Easterbrook and the team at Elite.
Clearance Rates
Melbourne | 12 August 2019
This week: 382 Auctions | Clearance: 76% | Last Year: 62% [source: REIV]
16 Hammerdale Avenue, St Kilda East Sold for $1,320,000
Congratulations to our buyer who secured this well located, updated, three bedroom, two bathroom house with car parking. The property was quoted at $1,100,000 to $1,210,000 prior to auction and three bidders participated in the auction. To everyone’s surprise the property was still not on market at $1,320,000 (our bid) where the property passed in. We secured the property after auction for the same price as our last bid.
2 Regent Street, Yarraville Sold for $905,000
Listed at $620,000 to $680,000 prior to auction, this unrenovated house with a heritage overlay (surprising with the 60’s/70’s house on the land) proved very popular at auction with 5 bidders trying to secure it. The opening bid of $650,000 put the house immediately on the market with the property selling well above reserve for $905,000. The owner paid $75,000, 32 years ago for the property
125 Albert Street, Seddon Sold for $800,000
Another renovators delight in the west smashed reserve on the weekend with this unliveable house selling $90,000 above its reserve. Three bidders tried to secure the property that not only was unliveable but backed onto the train line. An extensive restoration would bring this beauty back to its former glory. The property sold for $800,000, above its reserve of $710,000.
Good morning everyone,
The clearance rate surged to 76% on the weekend again demonstrating that more properties are required on the market. We are still in a balanced market but if the clearance rate increases any further, we will be at risk of being in a sellers market.
There were 375 auctions on the weekend with 230 selling at auction, 55 before auction and an additional 129 private sales. The clearance rate for houses was 78% and 74% for apartments. In comparison, there were 536 auctions the same time last year.
APRA reported last week that three of the four major banks have experienced strong growth in their mortgage portfolios one month after the election. Interestingly, the increase came from owner occupiers. Banks are still taking longer to process applications due to the outcome of the Royal Commission and now the increase in applications. Which means there are still many buyers were are keen to get into the market but are still not quite ready to do so.
We will welcome the increase in properties coming on the market over the next few months as we creep closer to the crazy spring season.
We had a busy week at Elite last week securing properties in Elwood, Greensborough, Docklands and Beaumaris for both investors and owner occupiers. Biggest congratulations to our super happy clients.
Have a great week and stay warm.
Kind Regards,
The Team at Elite.
Clearance Rates
Melbourne | August 3-4 2019
This week: 372 Auctions | Clearance: 76% | Last Year: 60% [source: REIV]
9 Primrose Street, Prahran Sold for $1,295,000
150 turned up to watch the competitive auction of this single fronted home in Prahran. The agent suggested 20 contracts had gone out prior to the auction. The home was quoted at $900,000 to $990,000 but wasn’t announced on the market until $1,200,000 during the auction. That is not to say the auction hadn’t reached the reserve much earlier than when it was announced. 9 bidders attempted to buy this and more who didn’t put up their hand with the property selling at $1,295,000.
2/352 Burnley Street, Richmond Sold for $2,178,000
Downsizers appear to be back in the market now that property prices are recovering. But the true test was whether the vendor could recover the $1,940,000 they paid for the property at the peak of the market in 2017. They did, and smashed it. Reserve was announced at $1,880,000 (showing the vendor did not believe they would achieve more than what they paid) with four bidders trying to secure the funky townhouse with lift. Three downsizers were part of this mix however missed out to a family who took home the keys.
454 Wellington Street, Clifton Hill Sold for $1,460,000
Again a huge crowd attended the auction of this four bedroom, one bathroom homes in need of repair but wasn’t scarce of willing parties to do the work. Seems numbers were generally high at auctions over the weekend. A deceased estate, the property was quoted $1,150,000 to $1,250,000 prior to auction. The property was announced on the market at $1,200,000 and sold well above that for $1,460,000. The buyer was a family who lived in the area and is intending to extensively renovate the property.
Good morning everyone,
Auction clearance rates were steady in the 70’s again over the weekend demonstrating we are now in a balanced market. But in saying that, there are still some properties attracting very good interest and resulting in a runaway result. Even though we could do with some more quality properties for sale, many vendors may need to see an increase in prices this quarter to have confidence to put their properties on the market. That being said though, selling conditions are currently at their best they have been for quite some time.
Auction numbers were up on last week with 396 properties going under the hammer with 249 selling at auction and 39 before auction. In addition, there were 148 private sales. The clearance rate on houses was remarkably higher this week at 77% and units/apartments 68%.
Biggest congratulations this week to our buyer who secured a beautiful home in East Melbourne last week off market. With stock levels down the importance of off market properties is greater in order to provide a buyer with more choice. Whilst the amount of off market properties is not huge, our team at Elite are tirelessly working to find more options for our clients. When we find a property that ticks all the boxes, it can be a great outcome for both buyer and seller.
Have a great week and stay warm.
Kind Regards,
The Team at Elite.
Clearance Rates
Melbourne | June 27-28 2019
This week: 670 Auctions | Clearance: 73% | Last Year: 72% [source: REIV]
39 Barry Street, Brunswick Sold for $752,000
4 Bidders tried to secure this unlivable house in Brunswick. Brunswick continues to be popular due to its close proximity to the city and prominent cafe lifestyle. The property had a heritage overlay which limited the buyers interested however the property still sold $70,000 above reserve for $752,000.
2B Beltane Avenue, Brighton East Sold for $987,000
A near new, single level two bedroom two bathroom townhouse with no common property in Brighton East was largely popular with downsizers. Although it was a younger buyer who took away the keys securing the property for $107,000 over reserve for $987,000.
100 Elsie Grove, Chelsea Sold for $1,230,000
The outer Bayside suburbs continue to be popular due to the more affordable price point than the Bayside suburbs closer to the city. Seven bidders tried to secure this renovated family home with pool on 851 sqm selling $70,000 over reserve for $1,230,000.
Good morning everyone,
The clearance rate held in the 70’s over the weekend with a rate of 71% achieved over the weekend on 285 auctions. 178 sold at auction, 24 before auction and additional private sales 170 bringing the total sales for the week 374. Interestingly we are noticing less properties are passing in on vendor bids and rather on genuine bids which demonstrates that most auctions now are attracting interest and participation from buyers.
The REIV released data on the weekend regarding the median house prices for both Metropolitan Melbourne and Regional. The Melbourne median price has now fallen for a consecutive 5th quarter to $785,000. A drop of 1.1%. The sentiment in the market, however, is demonstrating that this could be the last drop that we see and we really did not see confidence come back until after the election which is not fully reflected in this data. Our expectation is to see a rise in the median price in the next quarter’s data which will be released in October.
Enjoy the sunshine today everyone.
Kim Easterbrook and the team at Elite Buyer Agents.
Have a great week.
Kim Easterbrook and the team at Elite Buyer Agents.
Clearance Rates
Melbourne | June 20-21 2019
This week: 282 Auctions | Clearance: 71% | Last Year: 63% [source: REIV]
39 Ironbark Dve, Templestowe Lower Sold for $1,350,000
A five bedroom unrenovated home in good condition on 796 sqm went under the hammer and attracted strong bidding from five parties. The 50 year old family home sold to another family for $350,000 over the $1,000,000 reserve.
60 Pakington St, St Kilda Sold for $843,000
St Kilda’s worst house which was deemed unliveable due to structural issues went under the hammer over the weekend and was in hot demand. Six bidders drove the price to $843,000 which was $100,000 over reserve.
17/49 Head St, Brighton Sold for $1,522,000
Demand for entry level properties in Melbourne’s most expensive suburbs is still strong. Downsizers secured this property over three other bidders for $1,522,000 which was well over the price guide of $1,300,000.
Good morning everyone,
Another cold weekend with low auction volumes resulted in a surge in the clearance rate to 76% over the weekend. 254 auctions occurred over the weekend with 163 selling at auction and 30 before auction. In addition, there were 203 private sales. Showing that 50% of sales sold via an auction campaign and the other 50% by private treaty.
Stock levels have remained very low of the school holidays but we expect this start to increase now for the next 6 to 8 weeks until a lull during the football finals (September) before ramping up again for Spring.
A few weeks ago we reported that there has been some increase in enquiry from Hong Kong buyers due to some of their residents wanting to move their money out of the country. There are now reports that Chinese buyers are looking to return back into the Australian property market due to the Aussie Dollar being down over 10% against the Chinese Yuan over the past year.
This now allows the Chinese to offset the extra 8% tax they have to pay due to being foreign investors and therefore now making property in Australia more appealing. An interesting space to watch for the rest of the year.
Have a great week.
Kim Easterbrook and the team at Elite Buyer Agents.
Clearance Rates
Melbourne | June 13-14 2019
This week: 254 Auctions | Clearance: 76% | Last Year: 62% [source: REIV]
9 Clarendon Street, Armadale Sold for $1,350,000
This small but renovated two bedroom, one bathroom house close to Armadale train station was sought after by four bidders at auction. An investor snapped up the keys to the property for $1,350,000 which sold right at the top of the pre-auction price range.
10/9-15 Palmer Street, East Melbourne Sold for $942,000
Over the years we have seen some competitive auctions of apartments in East Melbourne but this one might just take the cake. This derilict one bedroom apartment with views of the city smashed its $650,000 reserve set by State Trustees, selling for $942,000.
4 Shackell Street, Coburg Sold for $889,500
6 bidders competed to secure this two bedroom, one bathroom, brick period home. The property was quoted at $700,000 to $750,000 and the vendors set their reserve at the top of the range at $750,000. The reserve was smashed by $139,500 selling to a first home buyer.
Good morning everyone,
The weekend results in a consistent clearance rate of 72% but on a low number of auctions. Of 290 auctions, 176 sold at auction, 33 before auction and in addition there were 142 private sales. The clearance rate for houses was 74% and units/apartments was 68%.
There is still no doubt we are battling with low stock levels but many selling agents are reporting healthier stock levels for August and so on. So hopefully more choice of properties will come onto the market soon.
Interest rates have now decreased twice in the past four weeks to be a historically low cash rate of 1%. Some banks are now offering fixed rates as low as 2.99% which raises the questions, is it now cheaper to buy than rent?
In some areas where there are an oversupply of rental properties, for example, Southbank, CBD, the answer is yes it could be. Other areas where the housing supply is lower, being Brighton, Thornbury, Yarraville and so on, it may be more expensive to buy. However, it must be said, money has never been cheaper to borrow and the Melbourne property market has certainly entered into recovery mode with a prediction of price rises not too far in the distant future.
There likely has not been a better time for tenants to take the leap into home ownership.
Have a great week.
Kim Easterbrook and the team at Elite Buyer Agents.
Clearance Rates
Melbourne | June 6-7 2019
This week: 287 Auctions | Clearance: 72% | Last Year: 62% [source: REIV]
8 Guthrie Ave, North Geelong Sold for $773,000
The interest in Geelong of late has increased over the past couple of years due to Melbourne being so unaffordable and Geelong being an easy commute from Melbourne either via car or train. The auction of this popular was strong with six bidders participating to try and secure this three bedroom, one bathroom, period home. The property sold $73,000 over the $700,000 reserve.
15 Linton St, St Kilda East Sold for $1,555,000
Well located, renovated, single fronted period homes are always in demand. Two bidders tried to secure the home which is just a hop, step and jump from the shops on Carlisle St. The auction started on a genuine bid of $1,480,000 where it was announced on the market. Another bidder participated and the two battled it out before it sold to a young professional couple for $1,555,000.
69 Ruskin St, Elwood Sold for $1,940,000
A perfect property for a downsizer. The auction of this renovated, single level home in one of the best streets of Elwood attracted bidding from two parties. A young professional couple and downsizer went head to head where the downsizer eventually won the keys for $1,970,000 after it was announced on the market for $1,830,000. A strong result of $110,000 over reserve.
Good morning everyone,
The Melbourne auction clearance rate increased again over the weekend to 73%, up from 70% last weekend. The clearance rate has consistently been improving since the election as a result of more confidence in the market and lower stock levels. Hopefully, the positive sentiment and the occasional runaway result will start to encourage vendors to put their properties on the market.
Of the 407 auctions on the weekend, 247 sold under the hammer, 47 before auction, 2 after auction and an additional 172 private sales.
Core Logic have released their statistics for the first 26 days of June and according to their data, Melbourne’s property prices resulted in a 0.1% increase for the month which is the first set of data released that supports the improved clearance rate and sentiment in the market. The market is starting to turn.
Any buyers that have been waiting until the market has stabilised to buy might want to start acting now. The two more interest rate cuts predicted, a healthy sentiment in the market, low stock volumes and improved clearance rates, the signs are there that the property prices will start to increase very soon, if not already.
Have a great week.
Kim Easterbrook and the team at Elite Buyer Agents.
1 Kent Grove, Caulfield North Sold for $1,820,000
A huge result yesterday at the auction of this three bedroom, two bathroom, 2 car park villa unit, the rear of two on the block. The property was quoted $1,100,000 to $1,200,000 before auction and was lifted mid campaign to $1,200,00o to $1,275,000 although comparable sales were indicating the property was worth $1,400,000 to $1,500,000. Four bidders fought fiercely to secure this property with all four bidders having budgets over $1,700,000. The property sold $520,000 over reserve for $1,825,000.
26 Lennox Street, Hawthron Sold for $1,720,000
An original 1970’s home on 308 sqm in a well located position of Hawthorn was in strong demand with 6 bidders participating in the auction trying to secure this piece of real estate. The winning bidder is the owner of the neighbouring property who secured that land over a decade ago. The purchase of number 26 will allow him to now build something larger scale. Not dissimilar to the auction of 1 Kent Grove, this property sold for a huge $500,000 over reserve.
19 Meagher Road, Ferntree Gully Sold for $733,000
The auction of this property was expected to be competitive with over 160 groups inspecting the property during the four week campaign. The vendors were leaving the home to downsize into a smaller property and the winning buyer was a young couple with a baby on the way. The property was announced on the market for $700,000 and selling under the hammer for $733,000. The fast bidding resulted in many other bidders being knocked out not being able to put up their hand.
Clearance Rates
Melbourne
June 22-23 2019
This week: 407 Auctions
Clearance: 73%
Last Year: 62% [source: REIV]
Good morning everyone,
I hope everyone is managing to stay warm in this cold snap.
The clearance rate increased again to 70% with some strong results in the marketplace. Stock levels are still low and this could be the case for some time to come. Of 487 auctions, 298 sold at auction, 42 before auction and in addition there were 178 private sales. Each week we are seeing a slight improvement in the clearance rate and it should remain stable throughout winter. We are expecting more buyers to enter the market soon as many are waiting on banks to approve their loans since the surge in applications after last months applications.
A very interesting report came out over the weekend in relation to the increase in enquiry to both Melbourne and Sydney real estate agents from Hong Kong residents looking to buy properties in Australia as they look at ways to move their money out of the country in light of the civil unrest. There was a significant decline in foreign investment in recent years due to the increase in government taxes and also China’s crackdown on their residents’ money being spent outside the country. It will be interesting to see what unfolds here.
The winter school holidays commence on Friday (with some schools already on leave) and it is common for the market to quieten during this time but we are expecting things to be reasonably active from mid July through to the commencement of the footy finals in September.
Have a great week.
Kim Easterbrook and the team at Elite Buyer Agents.
19 Hopetoun Street, Elsternwick Sold for $2,245,000
A large crowd attended the auction of this home that was going under the hammer for the first time in 42 years. A genuine bid got things going which was quickly answered by a second bidder raising the bid by $10,000. Three bidders involved in total with the property being announced on the market at $2,010,000 and sold for a healthy $2,245,000. The property has lovely period features but could do with some updating and is on land size of 478 sqm.
40/183 Kerr Street, Fitzroy Sold for $1,270,000
Converted warehouse apartments continue to be in strong demand due to their scarcity factor and the character they offer. The factory has a story behind it as well and used to be the factory where freddo frogs and cherry ripes were made. Two owner occupiers and an investor competed to secure the property but it was the investor who took home the keys to the three bedroom, one bathroom apartment for $1,270,000.
4/24 Leopold Street, South Yarra Sold for $875,000
This two bedroom, one bathroom, very well located art deco apartment was in demand attracting multiple bidders at auction. Art deco apartments attract simliar interest as what converted warehouse apartments do for the same reasons. Several bidders tried to secure this apartment but the winning bid was $875,000 which is a decent amount more than what is sold for two years ago for $767,000.
Clearance Rates
Melbourne
June 22-23 2019
This week: 487 Auctions
Clearance: 70%
Last Year: 64% [source: REIV]
