There were 922 auctions reported to the REIV weekend producing a strong clearance rate of 86%. 623 sold at auction, 169 sold before auction and in addition there were 207 private sales.
Active bidding, large crowds, reserves were smashed and whilst we thought a slow down in growth was in sight, the results from the weekend demonstrated this may not be the case. There is high interest from buyers across the board from investors, first home buyers, upsizers, downsizers, renovators/developers with pressure on prices at all price points.
Land sites for buyers looking to build large family homes are in high demand, 13 Mangan St, Balwyn sold at auction on the weekend for $3,381,000 with five bidders trying to secure the land site. The price quoted was $2,800,000 to $3,000,000. Another land site at 3 Bay Street, Parkdale sold for $2,575,500 on an agents price guide of $1,950,000 to $2,145,000. Whilst some agents price guides are low, reserves generally speaking have not been too far from the top of the range. It is the buyer competition that is pushing prices to these levels.
The REIV released their quarterly data last week which showed property prices increased by 8.8% in Melbourne, resulting in the Melbourne median house price surpassing the $1 million mark for the first time. The house prices in regional Victoria increased by 4% which equates to 12% growth for the year and 19% for units. The median unit prices across Melbourne increased by 5% for the quarter.
The amount of transactions for the quarter reached 35,000 which is the highest in six years. We are still playing a lot of catch up from last year however no one could have predicted the level of interest property has received this year.
Have a great week.