Hi,
The Melbourne property market had a big test on the weekend with 870 auctions reported to the REIV. 480 properties sold at auction, 176 sold before auction and 214 passed in resulting in a clearance rate of 75%. In addition, there were 146 private sales.
The increase in properties on the market has allowed buyers a lot more choice than they have had in previous years. As a result, it appears that many buyers are taking their time in purchasing and the FOMO (fear of missing out) we have seen in previous years has disappeared. Generally speaking, buyers are still quite cautious about committing to purchasing although the motivation to buy is now stronger than it has been for the past twelve months.
As a result, we are seeing many properties selling quickly and prior to the expiry of their EOI campaign or before auction. This is because many properties are only attracting one or two strong buyers. There are of course exceptions to this and some well located family homes are still attracting multiple bidding at auction.
Property prices are holding up even though there is generally less competition on each property. In many cases there are still one or two buyers willing to pay the current market value for the property which is resulting in less opportunistic buyers than what there was in the last quarter of last year.
A renovated, family home in Williamstown went to auction in front of a large crowd. The five bedroom, two bathroom period home was quoted at $2,200,000 to $2,400,000 prior to auction with five bidders participating. The property sold for $2,577,000 under the hammer.
A three bedroom, two bathroom villa unit in Moorabbin was in strong demand and the auction had participation from five bidders. 2/16 William Street, Moorabbin was quoted at $780,000 to $850,000 prior to auction and the opening bid of $900,000 put the property on the market. The property sold for $1,085,000.
Have a great week!
Kim Easterbrook
