Large crowds and a high average clearance rate are proving that 2014 is shaping up to be a big year for the Melbourne property market. A clearance rate of 75 per cent was recorded on 892 auctions on the weekend. There were 666 sales, and 226 being passed in, 104 of those on a vendor’s bid. In addition to the weekend auctions there were 438 private sales. With an average clearance rate of 72% so far for 2014, the market is performing better than the same time last year when the average was 67%.
Is this a sign of growth in the Melbourne property market? Well, we’ve been noticing that families are on the move into larger homes across all areas of Melbourne, which has resulted in more fierce competition at auctions. It’s not just the lower cost outer-suburbs which are being snapped up by families, but homes in the inner suburbs are also producing excellent sales results. Investors and downsizers are still contributing to the demand but when trade-up family buyers begin to compete for properties, it is a sign that the real estate market is settling into a period of growth.
Vendors may be trying to make the most out of improved buyer demand, but buyers are doing their research and are walking away from prices that don’t reflect fair value. Some auctions we’ve attended have had four or more bidders, but the resulting sale prices have not been too surprising based on the fair market values. It certainly is an interesting year for Melbourne property, and we’re loving being involved in it!
An expected 1,350 auctions will be held next weekend, making it the biggest auction weekend of the year to date.
