Auction numbers still remain low with 397 auctions being reported to the REIV resulting in a clearance rate of 78%. 226 properties sold at auction, 85 before auction and 86 passed in. In comparison, there were 511 auctions reported for the same time last year resulting in a clearance rate of 67%. There were a further 122 properties that sold via private sale and off market campaigns.
The REIV released their June quarter 2023 Median Prices over the weekend with metropolitan houses dropping 1.1% to $937,500 and metropolitan units climbing 3.2% to $630,500. Regional Victoria had a house price rise of 0.6% statewide to $604,500 and unit medians declined 2.6% to $411,500.
Interestingly, according to the REIV metropolitan units in the middle ring of Melbourne had the strongest growth with Mount Waverley climbing 25% to $1,245,000, Hampton units rising 20.1% to $1,105,000 and Brighton East climbing 14.9%. Whilst some of this data can be skewed by the sale of higher price point properties, I do believe there is something in this data that shows that buyers may be looking at smaller properties and cheaper price points due to rising interest rates. This could be a result of the bank not allowing buyers to borrow as much money or buyers just being cautious and not wanting to put themselves at risk of mortgage stress.
4/85-87 Miller Street, Carnegie went to auction on the weekend which was quoted at $740,000 to $770,000 prior to auction. Three bidders participated in the auction and the property was announced ‘on the market’ at $750,000. The property sold under the hammer to a young couple for $779,000.
For many months now, houses in Cheltenham generally speaking have been selling for strong prices. 27 Renowden Street, Cheltenham was quoted $1,250,000 – $1,350,000 prior to auction and is a large but dated, 5 bedroom, 3 bathroom, 2 car garage home located very close to the Moorabbin Airport. Four bidders competed for the home which sold for $130,500 over reserve for $1,480,500.
Have a great week.