The property market is gearing up for 2022 albeit auction numbers are down in comparison to last year. 402 auctions were reported to the REIV down from 549 for the same time last year. The clearance rate is remaining stable at 82%. In addition there were 185 private sales.
There has been a lot of talk about inflation this week but it’s no surprise that the RBA decided to keep interest rates on hold this week. The question remains, how much longer will interest rates stay on hold ? Inflation is rising at a quicker rate than the RBA expected. This shouldn’t initially have a huge impact on the property market as most buyers are already calculating interest rate rises into their overall purchase price budget.
Now that we seem to be getting on the other side of this latest Covid wave, I am expecting stock levels to continue to rise as we enter into a very active property market. Some strong sales results have already been reported which is not unexpected and it feels like the property market has just picked up where it has left off last year.
4 Draper Street, Albert Park went under the hammer over the weekend. The fixer upper was in strong demand and the auction contested by five parties. An opening bid of $1,000,000 did not deter the other parties with the bidding frenzy driving the price up to sell well above the reserve of $1,100,000. The property sold $445,000 over reserve to sell for $1,545,000.
Have a great week.