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Property prices levelling out as stock levels rise but could only be a short term relief for buyers

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Hi ,

The clearance rate remained steady over the weekend at 82% on 1,052 auctions reported to the REIV.  606 sold at auction, 260 sold before auction, 1 sold after auction and 185 passed in.  There were an additional 229 private sales recorded. The final number of auctions reported last week was 1,126 resulting in a clearance rate of 81%. These volumes are very consistent with a usual Spring period and the clearance rate has ever so slightly dropped as a result.

The increase in stock levels have contributed to some of the heat being taken out of the market.  That being said though we are still seeing some strong results on properties but these are becoming fewer.  Demand for family homes is still very high due to the toll of lockdowns still heavily in the minds of buyers wanting more space with extra accommodation, home offices and bigger backyards.  As we head into Christmas, the amount of properties on the market will start to decline again so this relief in the market might only be very short term.

It appears that the Mornington Peninsula property market has turned a corner with a drop in median house price in the September quarter of 0.6 per cent which is the first time prices have declined/stabilised since December 2018.  Whilst there is still prediction of growth to occur, the growth rates will be at lower levels (the growth rates for the past two years are not sustainable).

124 Harcourt Street, Hawthorn East went to auction on the weekend and was in demand.  The property is well located, offered lots of accommodation, was updated and as a result buyers were prepared to bid strongly to secure it.  The bidding commenced at $3,700,000 but quickly jumped to $4,000,000 (close to the reserve) but bidding was fierce with the property selling for $4,700,000 which was almost $700,000 over the reserve price.

An Albert Park home sold for over $1,650,000 over the reserve price with 53 St Vincent Place going under the hammer.  A large crowd attended the auction, with the renovated period home having a price guide of $8,000,000 to $8,800,000 prior to auction.  The property was announced on the market at $9,500,000 but likely to have hit the reserve prior to this announcement with the property selling for $11,110,000.

The inner north market has been very strong for the whole of 2021 and the auction of 80 Union Street, Brunswick was strongly contested by 5 bidders.  This unique corner shop which has been converted into a residential home (in need of an update though) had a price guide prior to auction of $1,700,000 to $1,730,000.  The property was announced on the market for $1,730,000 but bidding did not stop there with the property selling for $1,961,000.

Have a great week.

Kim Easterbrook

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