The clearance rate dipped slightly over the weekend with 685 auctions reported to the REIV. From 493 properties that sold, 375 sold at auction, 118 before auction and 192 passed in. There were an additional 133 properties that sold via private sale. Volumes are considerably down from last year where for the same weekend in 2022 there were 1,227 auctions producing a clearance rate of 75%.
CoreLogic released data last week that supported the downturn in the property markets across the country is easing with the four week rolling average of property prices showing that they actually marginally increased, Sydney (+0.8%), Melbourne (+0.2%) and Perth (+0.1%). This is largely due to a lack of new listings which CoreLogic reports to be down 19.9% from the previous five-year average for the same time of year.
CoreLogic also reported that overseas migration is rising and is putting pressure on property prices. With vacancy rates so low, people moving into Australia are opting to buy rather than rent. However, there are still some challenges in 2023 for the property market with interest rates predicted to rise another 0.5% to 1% over the course of the year. There is speculation though that the RBA may pause on rising interest rates next month to allow time to see if the interest rate increases have already had some impact on slowing inflation. Will be interesting to see what unfolds.
2/39 Wheeler Street, Ormond went to auction in front of almost 100 people on the weekend. Five bidders participated in the auction with many not even having an opportunity to put their hand up. The two bedroom, two bathroom unit, one of two on the block was quoted $790,000 to $880,000 prior to auction. It sold under the hammer for $1,040,000.
On the other side of town, the auction of a three bedroom home at 111 Greeves Street, Fitzroy was contested by three bidders. The property was quoted $1,550,000 to $1,650,000 prior to auction and sold for $1,724,000 which was $44,000 above the reserve price.
Have a great week.