Another Super Saturday across Melbourne over the weekend resulted in a slight dip in the clearance rate to 76% from 81% last weekend. It seems to be currently bouncing between the mid to 70%’s to the low 80%’s. Of the 1,049 auctions reported, 612 sold at auction, 184 sold before auction and 1 sold after auction. 252 passed in and there were an additional 216 private sales reported.
With war breaking out between Russia and Ukraine, there will be some flow-on-effects which will affect Australians pockets. Surging petrol prices, increase in grocery bills, higher prices for gas and electricity, stock market dropping and imports/exports will also be affected. This could benefit Australia with energy exports likely to increase from sanctions imposed on Russia. The Australian dollar is also predicted to be stronger as a result.
Interest rates are expected to rise as early as next month as a result of the Australian economy recovery. Spending is on the rise as Omicron case numbers drop and mask mandates have been removed in some states. The reality is that rising interest rates are a sign that things are improving. The unemployment rate dropped to 4.2 per cent in December and wages growth is improving. Whilst short term interest rate rises are expected, the rises shouldn’t be steep and will likely be gradual.
Whilst we experienced a slight dip in the clearance rate, it didn’t feel like that on the ground with the Elite team attending some very competitive auctions. 50 Esplanade, Brighton went to auction over the weekend with the property being sold for the first time in over 100 years. The location being directly across the road from the Bay is highly sought after but the property had a strict single dwelling covenant on it which would have deterred some buyers. The property sold for $5.395M.
Have a great week.