What an end to Autumn! Could this mean a strong winter in the property market? The number of auctions around Melbourne has soared in recent weeks, giving buyers more stock to choose from, and slowing down price growth. The latest results show a clearance rate of 73%, which is on par with recent weeks. There were 1,107 auctions held this weekend, with 806 selling, and 298 being passed in, 165 of those on a vendor’s bid. In addition to the auctions, there were also 455 private sales recorded over the weekend.
With the surge in listings in recent weeks, buyers are continuing to have the upper hand, and are willing to wait for the right property rather than rush in. This doesn’t mean that they’re not buying, there is simply so many properties to choose from that they are prepared to walk away if the price is not right. What does this mean for vendors? The market is remaining steady, and some vendors are being more realistic with their price expectations currently, as buyers become savvier.
As we’ve commented on in recent weeks, there is still a high demand at the top end of of the market (over $2 million). Particularly in prime streets within prime suburbs. Some suburbs experienced record sales on the weekend. A property in Glen Iris sold under the hammer for $3.47 million.
Winter is beginning, and we are expecting a tightening of new listings coming on to the market. With the long weekend coming up, we expect only about 250 auctions next weekend.