There were 965 auctions on the weekend with 564 selling at auction, 170 sold before auction, 1 after auction and 230 passed in, producing a clearance rate of 76%. In addition, there were 233 private sales.
CoreLogic released the quarterly median house price growth rates last week which confirmed that Melbourne’s property prices have stabilised. The growth rate for the past three months was 0.1% which is down on the price growth for the same period last year of 5.8% (which is unsustainable price growth). This information is also supported by the clearance rate falling into the mid 70% which also indicates we are in a balanced market. It is a refreshing change to the market which we know historically can shift into a sellers market again in the blink of an eye.
There was an interesting article in the Herald-Sun over the weekend which discussed the sharp increase in $1m property deals in the Melbourne property market. Over the past five years, the number of Melbourne homes that sold for over $1m doubled. Of the 100,849 residential property transactions in Melbourne last year, 32,973 were $1m or more which is a significant increase from 16,501 in 2016 and 5,813 in 2011. Interestingly Geelong also had a boom in million-dollar sales from 130 in 2011 to 1,706 in 2021.
We are seeing more properties pass-in at auction but are selling immediately after. There is no doubt that negotiations of properties that pass-in can be very difficult and emotional, especially for a buyer looking to move into the home. Selling agents are very good at executing strategies to get buyers up in price. 186 Coppin Street, Richmond was an example of a property that passed-in on the weekend. The property was quoted at $2,950,000 – $3,200,000 prior to auction but passed in at auction after receiving a one bid of $3,100,000. The property sold immediately after auction for $3,250,000.
Have a great week.