Hi,
Auction numbers were down this past weekend and so too was the clearance rate. 661 auctions were reported to the REIV resulting in a clearance rate of 65%. 325 sold at auction, 103 before auction but it must be noted that the number of private sales for the week were high at 362. Over double what they were last week.
Moving closer to Christmas, most of the auctions campaigns remaining for the year will be launched this week and then the odd private sale campaign coming thereafter. As mentioned in previous weeks, we are coming into a time where there were more off market transactions happening and we are beginning to see them trickle through to our office.
The clearance rate dropped to its lowest it has been for quite some time meaning either two things, that buyers weren’t prepared to transact on the properties that were on offer at auction (either not suitable or not confident enough to purchase) or the vendor wasn’t willing to drop their price to sell. The number of private sales for the week was high sitting at 362, however probably not too unusual for this time of year.
Over the next few weeks, leading up until Christmas I believe the buying conditions may be as good as they will be for quite some time. Buyer confidence is down, vendors will be motivated to sell before the end of year, and with interest rate rises slowing down and potentially stabilising in the New Year, now might be as good as time as any to buy. Our enquiry from investors has increased and usually it is the savvy investors who reap the rewards when buying in a downturn.
The auction of 15b Service Street, Hampton attracted a very large crowd and the bidding was quick to start for the well located, updated, three bedroom, two bathroom, two car (one car garage) townhouse which is located at the rear of three. The property was quoted $1,350,000 to $1,450,000 prior to auction and quickly took off where it was announced on the market at $1,500,000. A downsizer ended up securing the property for $1,660,000 at an auction that attracted five bidders in total.
59 Poolman Street, Port Melbourne went to auction over the weekend and is a great example of what is happening with unrenovated properties in the current market. The unrenovated four bedroom, two bathroom, three car ‘Bank House’ failed to attract a bid at auction. Many buyers are nervous about the cost of renovating and this is presenting opportunities for buyers who are willing to ‘get their hands dirty’. The property sold after auction for an undisclosed amount, which is a very common occurrence in the current market.
Have a great week.
Kim Easterbrook
