The auction clearance rate over the weekend was 82% from 374 auctions. 219 sold at auction, 85 before auction and 2 after auction. In addition, there were 212 private sales. This is the third week in a row that auction clearance rates have been in the 80%’s. In comparison, there were 919 auctions on the same weekend last year achieving a clearance rate of 72%.
Premier Daniel Andrews yesterday announced the next step of easing restrictions in metropolitan Melbourne and they included some changes for real estate. 10 people will now be allowed to inspect a property at the same time This is not an open for inspection (rather a private inspection with multiple buyers) and the time cannot be advertised. This is welcoming news for both selling agents and property managers who have been working extremely hard taking buyers through individually. From the 23rd of November, auctions will be allowed to have 50 people outside or 20 people inside as long as social-distancing requirements are met.
The ring of steel is now lifted meaning buyers can inspect properties anywhere in the state. I am expecting that the amount of properties for sale in Regional Victoria will increase dramatically as many vendors were holding off until Melbourne buyers could physically inspect them. The amount of properties on the market in Melbourne should also increase as confidence builds whilst restrictions ease.
Over the past week we have experienced a considerable increase in buyer enquiry looking to purchase. This has been from first home buyers, investors, upsizers and downsizers, all segments of the market. The resistance we were receiving a few weeks ago from buyers indicating they are going to wait until next year seems to be fading. This is partly due to the record low interest rates but mostly due to the increased confidence with back to back days of zero new Covid-19 cases in the state.
Off market transactions are still very active, we purchased two properties off market last week in Newport and Elsternwick. There is still a short window for vendors to put their properties on the market before Christmas and I believe there will be a rush over the next few weeks. The real estate industry will likely shut down for a couple of weeks over the Chritmas period but it is unlikely that we will be closed for the most of January like the industry historically has been.
Have a great week.