There were 943 auctions on the weekend resulting in a clearance rate of 83%. Of the 943, 631 sold at auction, 154 before auction and there were an additional 201 private sales. Next weekend will be a Super Saturday with over 1,000 auctions and once again, the clearance rate should reach into the 80%’s.
According to CoreLogic, the Melbourne’s housing market rose 2.1% in February and was one of the strongest performing markets in the country, just behind Sydney and Hobart which experienced price growth of 2.5% over the month. Regional Victoria also experienced strong growth of 2.6% for the month and an overall price growth of 6.2% over the past 3 months. Houses in Melbourne are once again are outperforming units with overall price growth of 2.4% and units at 1.2%.
The amount of properties on the market has increased which has resulted in a healthy amount of transactions. However, if you speak to any buyer looking to purchase, they might argue that there is still a lack of quality stock to choose from.
Over the past six months, the amount of off market transactions has decreased inline with declining Covid-19 cases and auctions performing well. I am expecting this to change over the next few months as a result of the amended Residential Tenancy Act. Whilst some of these changes are long overdue, some of the requirements to get properties to a standard required by the Act may just be enough to push an investor to sell. Last year was no doubt a tough year for the rental market with some landlords having difficulty leasing out their property (although we have seen some recovery so far this year).
For this reason, we should see a small rise in off market activity as some landlords will sell their property with a tenant in place. The reason why a landlord will sell this way is that the property has not been styled/presented for sale and the buyers who inspect will need to be well qualified and educated to see through this.
Have a great week.