There were 653 auctions reported to the REIV on the weekend achieving a clearance rate of 70%. 352 properties sold at auction with 106 selling before auction. There were an additional 195 private sales. Interestingly, last week’s final clearance rate was also 70% on 677 auctions.
We have entered into a market of negotiations rather than properties mostly selling under the hammer. Most auctions are experiencing less bidders than what they would have late last year. 70% clearance rate for the past two weeks represents a stable market where buyers and vendors are willing to transact. More auctions are passing in but they are passing in on a genuine bid and some buyers are taking advantage of the current market conditions. It is a tricky market though, some properties are selling for less than what they should have, yet other properties are selling well above expectations.
The family home market currently is a strong segment of the market. Lack of stock and maybe a hangover of demand from Covid lockdown days may be driving this.
A couple of examples of these are:
A big auction on the weekend of 281 Richardson Street, Middle Park. The property was quoted at $4,000,000 to $4,400,000 prior to auction and the auction attracted bidding from five buyers. The crowd of over 200 people watched the price achieve over $5,000,000 where the property sold for $5,050,000 which was well above the reserve price.
A Geelong property broke the residential house price record for the suburb with 5 The Esplanade, Geelong going under the hammer. The four bedroom, two bathroom home on 892 sqm with absolute waterfront views was quoted at $4,000,000 to $4,400,000 prior to auction but interestingly the reserve was set at $3,800,000. The bidding (from three strong buyers) went way past this and the property sold for $5,225,000.
Have a great week.