There were 485 auctions reported to the REIV on the weekend resulting in 259 selling at action, 80 before auction and 146 passing in resulting in a clearance rate of 70%. There were an additional 283 private sales reported.
It seems we are not quite back into a normal Spring season yet. Stock levels are still low where a normal Spring auction season would usually result in a flurry of properties coming onto the market. Many vendors are holding off selling their properties until more confidence comes back into the market.
That being said, the auctions we attended on the weekend were all competitive with not just one or two bidders, some upto five bidders. The property market is definitely showing some resilience over the negative press and rising interest rates. With the four banks all agreeing the end of rising interest rates is in sight, it is giving buyers confidence to take advantage of the current market conditions which is more favorable to buyers than the same time last year.
Whilst auction numbers are down, there is a rise in private sales which often happens in a property market that is not booming. Private sales allow the agent more power in a negotiation than an auction that could only have one or two bidders. It allows the agent to keep their buyer pool cards close to their chest where an auction publicly displays if there is lack of demand on a property.
Thornbury was popular with buyers on the weekend with two auctions attracting competitive bidding. 21 Mansfield Street, Thornbury auction was brought forward a week due to an acceptable offer of $2,450,000 being offered prior to auction. The four bedroom, two bathroom, renovated home on over 400 sqm of land was quoted at $2,100,000 to $2,300,000 prior to auction. The auction attracted three bidders over $2,450,000 with the property selling for $2,615,000, $315,000 over the reserve price.
Another auction at 16A Kelvin Grove, Thornbury was quoted at $950,000 to $1,045,000 prior to auction with the auction attracting five bidders. The well located two bedroom, one bathroom home, in liveable condition but requiring an update in the future was popular. The opening bid of $950,000 was quickly challenged with four other bidders participating in the auction. The property sold for $1,180,000 which was $120,000 over the reserve price.
Have a great week.