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Family homes selling strong at auction as buyers look for extra space

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April 26, 2021

Hi,

There were fewer auctions over the Anzac Day weekend with 704 reported to the REIV producing a clearance rate of 80%.  566 sold at auction, 138 passed in and there were an additional 183 private sales.  We will have five weeks straight of high auction numbers before the Queen’s Birthday weekend with the 1st of May being a super Saturday (a weekend with more than 1,000 auctions scheduled).

Family homes have been performing very well at auction with many producing results well above their reserve prices.  There are examples of this all over Melbourne and regional Victoria as buyers upgrade for more space.   Some family home buyers are looking for bigger backyards and a home office (or extra bedroom) as a result of spending more time at home last year and changes to the way we work.

The auction of 14 Landcox Street, Brighton East had four bidders wanting to secure the five bedroom, four bathroom period home on over 1,000 sqm.  The property was quoted $3,200,000 to $3,225,000 and sold for $3,503,000.  Buyers were drawn to the substantial land size and the number of rooms the property had, even having a fully self-contained studio at the rear.

36 Stuart Avenue, Cheltenham was very popular with buyers due to the entry level price point for a house beach side of the highway.  The three bedroom, two bathroom, orange brick home was quoted $1,300,000 – $1,350,000 before auction.  A flurry of bidding pushed the price well above the reserve price selling for $1,663,000.

The auction of 67 Deep Creek Drive, Doncaster East (a large four bedroom, three bathroom home on 1,600 sqm) had five bidders.  The property was declared on the market at $2,700,000 and sold for $3,050,000.  The property had a swimming pool, a tennis court, four bedrooms, three living areas and a home office.

It is not unusual for properties to be selling 10% to 20% above the advertised prices in the current market.  This is mostly not due to underquoting as such, but from strong buyer demand pushing the prices well above the agents estimated selling range and vendor’s reserve prices.

Have a great week.

Kim Easterbrook

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