There was an increase in auction activity over the weekend as we head into the Spring season. 542 auctions were reported to the REIV, 287 sold under the hammer, 85 sold before auction resulting in clearance rate of 69%. There were an additional 344 private sales.
Stock levels are on the rise and many are asking whether now is the right time to buy. With higher stock levels predicted, some degree of market uncertainty and rising interest rates, this could actually make for the best conditions for a buyer that we have seen in quite some time, and a time that might be short lived. As I mention time and time again, the property market is not as dire on the ground as the media are reporting. The clearance rate is consistently sitting in the high 60’% and the market is feeling stable. Most properties that we are purchasing at present are under competition from multiple buyers.
CoreLogic just released their quarterly data which suggests that Melbourne house prices dropped 1.1% in September and 3.7% for the 3rd quarter. This somewhat does reflect what we are seeing with some of the results however it can’t be said for all properties with quality family homes being in short supply and still achieving some high prices.
Once we see inflation under control and stability in interest rates, there is no doubt we will see confidence back in the property market. There are many buyers just sitting on the fence right now waiting for the right time to buy. Unfortunately, we never know when the bottom of the market actually is until we see a rise in property prices again. However, whilst there are less buyers willing to transact at this particular point in time and stock levels are rising, now could be the right time for some of these buyers to transact.
128 Farrell Street, Port Melbourne went under the hammer on the weekend and is a very well located, two bedroom, one bathroom single level period home in need of a makeover. Quoted $1,150,00 to $1,250,000 prior to auction, three bidders competed to secure the property pushing the price $154,000 over reserve to sell for $1,354,000.
Have a great week.