Melbourne’s auction clearance rate remained steady at 72% over the weekend which is a positive sign for the property market as it was a ‘Super Saturday’. 1,082 auctions were reported to the REIV with 555 properties selling at auction, 224 sold before auction and 303 passing in. In addition, there were 178 private sales. The same weekend last year produced a clearance rate of 72% on 480 auctions.
All signs are showing that the Melbourne housing market has turned the corner with multiple data tracking resources suggesting that Melbourne’s house prices marginally rose in September off the back of a small rise in August. CoreLogic’s data is showing Melbourne’s property prices increased 0.4% in September and overall rose 1.3% for Q3 2023. They have also suggested that Melbourne property prices have risen 4.3% since the property market bottomed out in December 2022.
This does not apply to all segments of the market with renovated houses leading the charge and apartments falling behind. However, the averages are suggesting that we are back in a slow but steady rising market. This will likely slow down temporarily after the predicted interest rate rise next week. Historically, we experience a week or two of uncertainty until buyers get their head around the new interest rate and feel confident enough to buy. I have no doubt the start of November will likely be the same.
We are seeing more properties passing in at auction after active bidding. This means that vendor’s reserves have not been met and they have to lower their expectations in post auctions negotiations in order to achieve a sale.
However, this was not the case at 18 Tennyson Street, Richmond which attracted strong competition at auction. Renovated warehouse conversions are in very high demand and this property was no exception. The three bedroom, three bathroom property was quoted for $2,550,000 – $2,700,000 prior to auction and selling for $430,000 over reserve for $3,130,000.
Have a great week!