Auction numbers are on the rise with 430 auctions reported over the weekend resulting in a clearance rate of 82%. This time last year there were 392 auctions with a clearance rate of 76%.
Whilst we have only seen two weeks of auctions results this year, generally speaking, properties are selling above reserve and above the latest comparable sale in areas of metropolitan Melbourne, Geelong and Ballarat.
Each time there is a prediction of a property market crash, prices have often decreased a little and then bounce back stronger than before. Melbourne’s property market in particular, has just gone through it’s biggest test of all time and has shown amazing resilience. With the level of confidence and number of buyers in the market, it is likely we will see a rising market for the remainder of 2021 and beyond.
Jobkeeper is set to cease at the end of next month but as the economy starts to recover, this seems to be a less of a concern that it will affect the property market. In fact, it seems that some businesses are starting to rehire again. Also banks have extended out their mortgage holidays to the end of March but payment breaks are set to cease at the end of July. The amount of people on mortgage holidays though is less and less as time goes on.
There was a very interesting sale in Bentleigh East over the weekend. McKinnon High School is opening a new campus in 2022 to meet growing demands for the school. This has resulted in an extension in the school zone even spilling into Carnegie and Murrumbeena. 12 Fisher Court, Bentleigh East went to auction on the weekend which is now located in the new school zone. The property has a liveable but very dated home on 721sqm of land and sold for $1,610,500. A result that is estimated to be hundreds of thousands of dollars higher than what it would have achieved not being in the school zone. The last sale in the court was $660,000 in 2013.
Have a great week.