Another weekend of clearance rates sitting in the 70%’s with 770 properties going under the hammer with 416 selling at auction, 145 selling prior to auction and 209 passing in. The end of result was a clearance rate of 73% (according to the REIV).
The Reserve Bank will meet tomorrow and whilst the consensus has been that they will hold off rising interest rates until after the federal election, Economists are now predicting they will go up tomorrow for the first time in 10 years. This is no doubt in the back of buyers minds which is resulting in fewer runaway auction results. It is likely that buyers are factoring interest rate rises more cautiously than they have before. Buyers also seem to be sticking to their set budgets rather than getting carried away in bidding frenzies.
Some buyers (and also some vendors) are holding off transacting until the federal election is over. Not that this federal election will immediately impact anything as both parties are pretty much on an even playing field when it comes to property. That being said, some are using this as an excuse to hold off.
A 155 year old mansion went under the hammer in South Melbourne over the weekend with two bidders fighting to secure this rare property. The five bedroom, four bathroom period home on 699 sqm at 30-31 Howe Crescent, South Melbourne smashed the reserve by $1,000,000 selling for $10,100,000.
13b Tarella Road, Chelsea attracted a large crowd at auction and the very well maintained, single level townhouse had interest from at least 10 parties there to bid. The property was quoted at $1,000,000 to $1,100,000 with the auction opening up at the top of the range at $1,100,000 which knocked some buyers out from participating. The price moved quickly where it sold for $1,259,000.
On the other side of Melbourne, a small two bedroom, one bathroom renovated cottage close to the Yarraville village was quoted for $950,000 to $1,000,000 prior to auction. The property sold for $1,082,000. Interestingly it sold in 2014, unrenovated, for $620,000.
Have a great week.