The clearance rate over the weekend remained stable resulting in 67% of auctions selling. There were 406 auctions reported to the REIV with 214 selling at auction, 60 before auction and 132 passing in. There were an additional 158 private sales.
Core Logic have released their July data which shows that house prices in Melbourne have dropped 1.6% for the month and 0.9% in Regional Victoria. Units have dropped 1.2% in Melbourne and 0.4% in Regional Victoria. So far property prices have dropped 3.2% in Melbourne and 0.5% in Regional Victoria over the past 3 months.
Whilst the media are going to town on property prices, the sentiment on the ground is somewhat different. Some buyers are seeing this market as an opportunity to get in. Some investors are also recognising that property is a long term hold and are biting the bullet to buy something superior to what they would have been able to buy 12 months ago. Some buyers who sold in the stronger market, opted to rent for a short period of time and are looking to buy in Spring when stock levels increase. Overall, there is still good levels of activity albeit volumes are definitely down.
There has also been a lot of media attention in regards to rising rents and whilst we have seen rents recover from pre-Covid prices we are not seeing the large increases like the media are suggesting. There is no doubt, well located renovated houses are in strong demand. But properties that are tired, over priced, not presented/marketed well are still taking some time to lease out. Renters generally speaking still have choice.
Some auctions attracted decent competition at auction with 3/17 Manor Street, Brighton being one of those. The unrenovated three bedroom, two bathroom villa unit on 394 sqm in a premium location of Brighton attracted three downsizers bidding at auction. The bidding commenced at $1,900,000 and sold for $2,350,000 under the hammer.
Have a great week.