There was a Super Saturday in Melbourne over the weekend with 1,019 auctions reported producing a clearance rate of 81%. 623 properties sold under the hammer, 192 sold before auction and 195 passed in. There were an additional 204 private sales.
The Australia Bureau of Statistics released data showing new home loans surging to a record high in the month of March (an increase of 5.5% over the month). The data showed that investors had the largest increase (which is consistent with the new enquiry we are receiving in our office) but worryingly that first home buyer approvals have dropped.
Interestingly, what this does demonstrate is that there are still a lot of buyers wanting to enter the property market and have only just started the process. Price growth does seem likely for quite some time to come whilst interest rates remain low and confidence is high. However, the rate of price growth is stabilising which is not unexpected as an increase of 8.8% in one quarter is not sustainable. It seems the ‘fear of missing out’ is easing.
The auction of the property at 10 Hardinge Street, Beaumaris was competitive with seven bidders trying to secure this land site. The demand for houses in Beaumaris has increased dramatically due to the new Beaumaris Secondary College school zone. The deceased estate was quoted for $1,550,000 to $1,650,000 prior to auction with the knock down selling for $2,035,000.
1572 High Street, Glen Iris sold well above reserve with just the two bidders participating at the auction. A strong opening bid knocked out some potential purchasers but was challenged with the property selling for $3,001,000 which was more than $400,000 above the reserve price.
Have a great day.