Auction numbers decreased this week with 676 auctions reported to the REIV resulting in a clearance rate of 74%. 365 sold at auction, 135 sold before auction and 176 passed in. In addition there were 136 private sales. Similar numbers on the same weekend last year with 661 auctions reported to the REIV and a clearance rate of 72%.
The Reserve Bank is due to meet again tomorrow and many are predicting interest rates will remain on hold. Some Economists are suggesting that we may actually have reached the peak and interest rates may start to come back down next year. Once we have reached interest rate stability this will result in an increased number of buyers in the market as confidence in the property market grows. This however will be needed to balance out the market if stock levels are predicted to rise as what has been suggested. The apartment and villa unit market could be have a short term surge in listings as landlords offload their investment properties.
Coming into next year though, stock levels are likely to come back down as the vendors who have been sitting on their hands and vendors under financial pressure would have sold. If you are thinking of buying, this Spring season may offer opportunities that we may not see again. The growing confidence in the property market added to population growth may encourage property prices to go up again in 2024.
Some strongly contested auctions on the weekend including 59 Gooch Street, Thornbury went to auction on Saturday and the two bedroom, one bathroom, structurally renovated terrace home was popular at auction with five bidders trying to secure the property. The property sold for $1,291,000 which was $171,000 over the reserve price.
A family home in Camberwell was also in strong demand with four bidders participating in the auction. The property had a price guide of $3,500,000 to $3,800,000 and sold for $4,515,000 after being announced on the market at $4,100,000.
Have a great week!