88% clearance rate and many buyers not fearing the second wave.

As the Covid-19 second wave worsens in Melbourne, it doesn’t seem to have deterred many buyers from purchasing a property.  Even though fearful, there is a “lets just get on with it” attitude across the city.  We are all learning to live with this disease and we are becoming more accepting that this is the way of life at least for the next year or two.

The weekend produced a staggering 88% clearance rate on 211 auctions.  To break this down, there were 104 sold at auction, 80 before auction, 1 sold after auction and an additional 339 private sales bringing the total number of sales for the week to 524.  These numbers are not dissimilar to an average July week of sales in a normal market.  In comparison last year there were 295 auctions with a clearance rate of 76%.

Lockdown life in the property market has now reverted back to how it was in March. Auctions are now back online, increase in private sales, inspections are via private appointment only. Reports from many selling agents have suggested very active private inspections on many of their properties.

Unfortunately, some businesses may not survive this second wave and people could lose their jobs.  However vulnerable buyers exited the market in March and we do not anticipate this second wave will have much impact on demand.

Online auctions are now the new ‘norm’ with almost 100 people joining a Zoom auction of 30 Trinian Street, Prahran.  The property was quoted at $1,850,000 to $1,950,000 prior to auction and sold for $2,300,000 which was $350,000 over the vendor’s reserve.  Five bidders in total drove the price to this level.

Over the next month or so, we are expecting there to be drop in properties listed online for sale and a rise in off market activity to levels seen in March/April.  We are also anticipating that prices will remain stable as purchases/sales will still need to happen.

Stay safe everyone.

Kim Easterbrook