A steady clearance rate of 74% was recorded this weekend in Melbourne. There were 843 auctions held, with 623 selling, and 220 being passed in, 116 of those on a vendor bid. In addition to the auctions, there were also 422 private sales recorded over the weekend.
As reported by the REIV, Melbourne’s auction numbers for the September quarter of 2014 have set a new all-time record. There were around 8,165 held across the city in the past three months. This is 15 per cent higher than the same time last year.
Meanwhile, October has seen the residential market calm down more than it has in the past few months, as a result of increased stock and smaller numbers of bidders competing at auctions. Only one to three prospective buyers are now bidding at many auctions, and the most prevalent competition is found at A-grade properties in superior locations. The “panic buying” of five or more bidders vying for the same property, that we were witnessing at the mid-year auctions, is now occuring less frequently.
You may have read Kim Easterbrook’s comments in The Sunday Age yesterday. Kim discussed how buyers are far less panicked than they were a few months ago, and that current prices are basically where they should be, as opposed to 10 per cent above where they should be.
With these fair prices in mind, we are very keen to see what results next weekend’s 983 scheduled auctions will produce. Have a great week!