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.
Kim Easterbrook and the team at Elite.
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.