The second biggest auction weekend this year resulted in a surprisingly stronger clearance rate than I was expecting. 73% of properties that went to auction sold. There were 820 auctions reported to the REIV in which 436 sold at auction, 159 sold before auction, 224 passed in and 1 sold after auction. In addition there were 153 private sales. As a comparison, the time last year there were 809 auctions resulting in a clearance rate of 64%.
The last interest rate rise seems to have had little impact on the property market albeit buyers are certainly more cautious and factoring in potentially more interest rate rises. As with any previous interest rate rise, there is an element of shock and negativity surrounding the property market for a week or two and then a small recovery as buyers get their head around the new interest rate. This last rate rise seems to be no different.
Many selling agents have been reporting lower numbers through open for inspections and less bidders at auctions and the market was beginning to feel very similar to the decline we saw leading into Christmas last year. However, the results from the weekend show the clearance rate is significantly better than the same time last year.
There is no doubt the property market is patchy and some vendor’s are having to lower their expectations in order get their property sold. There is a big difference between the level of competition on renovated family homes and anything that is compromised (poor floor plan, not renovated, not so great location, etc).
A renovated home in Ivanhoe went to auction on the weekend and attracted strong interest from buyers. 14 Della Torre Cres, Ivanhoe was originally quoted for $2,900,000 to $2,950,000 and was lifted during the campaign to $2,950,000 to $3,050,000. The renovated four bedroom, three bathroom home with a double garage sold for a huge $3,621,000 making it the second most expensive home to sell in Ivanhoe for 2023.
Whilst in the south east, an unrenovated three bedroom, two bathroom townhouse in one of Toorak’s best streets passed in at auction. 70 Albany Road, Toorak failed to sell under the hammer but sold immediately afterwards for an undisclosed sum which we believe was below $2,000,000.
The next few weeks should bring some good opportunities for buyers as it does during most Christmas periods. Both vendors and selling agents are generally motivated to sell before Christmas and we also expect off market activity to rise now that most auction campaigns for 2023 have launched.
Have a great week.