The sunny conditions on the weekend provided a perfect setting for the Melbourne auction market. There were 680 auctions held this weekend across Melbourne, with 501 selling, and 179 being passed in (76 of those on a vendor bid) resulting in a solid clearance rate of 74%. In addition to the auctions, there were also 429 private sales recorded over the weekend. The month of October is estimated to host approximately 4,000 auctions, including two Super Saturdays. The REIV have reported that this level of auctions is higher than the 10-year average of 3,182 for the month.
Residential buyers have not been deterred by the recent warnings from the Reserve Bank about excessively rising house prices. In fact, there’s evidence that some areas of the Melbourne market are remaining steady.
The most hotly contested areas at auction on the weekend were the inner city, inner east and inner north. We’re seeing strong demand for period homes and redevelopment sites, and buyer competition at auction can be intense which is clearly driving up prices in these areas.
With price-growth remaining steady in many areas, except for the expensive pockets of Melbourne’s inner east, sellers are having to be realistic in their expectations of sales figures. Buyers will not pay more than fair market value of properties. A good sign for those looking for property in the coming months.
Next weekend, there is an expected 886 auctions to be held in Melbourne.
