With plenty of housing stock on offer, buyers have been able to gain the upper hand in the Spring auction market. This weekend, there were 1,193 auctions reported, and a clearance rate of 69 per cent. From those auctions, 821 sold, and 372 were passed in, 202 of those on a vendor bid. In addition to the auctions, there were also 356 private sales reported.
It’s been a huge year for Melbourne auctions up to November. The REIV have recorded a 17 per cent jump in the total number of auctions held in the year to date, compared to last year. Furthermore, three suburbs top the list of numbers of homes sold this year for more than $2 million – Brighton, Toorak and Kew each had over 100 sales in this price category. Some impressive results!
With 1,193 properties auctioned on Saturday, there were plenty of opportunities for buyers to secure homes at good prices. The pressure on vendors having to sell their properties before the Christmas season, which sees the market winding down, has meant that there may have been some last-minute negotiations to reassess the reserve price on their properties. Some auctions have started late, or required the auctioneer to have extended delays caused by these late negotiations of reserves. So, are bidders waiting for properties to be passed in, before getting involved in the ‘real’ negotiations. In some cases, yes. But this is not always the best tactic to employ when purchasing property.
Clearance rates are moderating, and the buyer-pool is growing smaller as buyers are making their purchases this Spring, these are both trends typical of this time of year. It might put some pressure on vendor prices over the coming weeks, as the auction market starts to slow down before the holidays, but it’s a great time to buy!
Next weekend, Melbourne should be hosting another 1,120 auctions; and within that there are some excellent opportunities for buyers. We cannot wait!
