351 auctions were reported to the REIV on the weekend resulting in a clearance rate of 64%. 181 properties sold at auction, 44 before auction and 126 passed in. An additional 136 properties sold via private sale.
The Australian economy is continuing to do well and the unemployment rate released last week is at its lowest point in 48 years at 3.5%. This is partly contributing to the high inflation that we are experiencing and resulting in the RBA raising interest rates. Some economists are predicting a rise of 0.75% in August with the aim to gain control of inflation at a faster rate, then if all goes to plan, a pause in interest rate rises in September.
According to Domain, in the June quarter median house rents jumped $10 per week to $460 and units rose on average $20 per week to $410. This is a result of tenants moving closer to the city as workers return to work, but also a result of a reduction in rental listings as some landlords sold to avoid the new rental compliance laws. There has also been a shift in renters moving away from share housing with some young people preferring to live with less people (which appears to have been a result of the pandemic).
57 Tennyson Street, Elwood went to auction on the weekend and attracted four bidders at auction. The 5 bedroom, 2 bathroom property was quoted $3,400,000 to $3,600,000 prior to auction with the property being announced on the market at $3,525,000 and sold under the hammer for $3,724,000.
In a very common scenario in the current market, 4 Shepparson Avenue, Carnegie passed in on a single bid of $1,610,000. The property then sold immediately after the auction for $1,700,000. The house does require extensive renovations and due to the current high construction costs, many properties needing extensive work are struggling to sell, or selling with limited competition.
Have a great week.