The clearance rate dipped under 50% again this week with 757 properties going under the hammer. 282 properties sold at auction, 83 sold before auction and there were 218 private sales. Of the 392 that passed in, 170 were on a vendor bid. Interestingly there is a divide between the clearance rate for houses and the clearance rate for units/apartments.
For the past few years we have seen the two tiered market with houses (generally speaking) outperforming units and apartments. In the current market however more units/ apartments are selling at auction with more houses passing in and spending more days on market. The clearance rate for houses over the weekend was 45% and the clearance rate for units was 55%.
This is certainly a representation of what we are also witnessing in the market. The $2m plus market has softened where as the more affordable quality properties in premium suburbs are in high demand. This demonstrates that it is a good time to upsize if you are thinking of doing so. You can still maximise on a solid sale result for your current property and enjoy some savings on the larger home. The softening of the $2m plus market has also put a lot of downsizers out the market and will do so until this segment of the market recovers.
As we close in on Christmas, December is still a very active time for real estate in Melbourne. We will likely see agents working right up to Christmas Day this year as they will be holding more stock for longer as the days on market creeps up. This also should make way for some good buying opportunities for buyers to take advantage of.
Hope you all have a great week.
Kim Easterbrook – Managing Director
3/296 Inkerman Street, St Kilda East Sold for $465,000
Two first home buyers (one of which was represented by Elite) went head to head to try and secure this one bedroom apartment with a courtyard in a very popular location. Properties with courtyards are highly sought after due to their rarity. Both parties we keen to secure this apartment in this tightly held block with the property selling for $465,000 under the hammer.
6/25 Windsor Place, Melbourne CBD Sold for $1,515,000
This apartment located in the Paris end of the CBD was extremely popular and attracted six bidders under the hammer due to its large size, location and also being located in a small block of nine apartments. Small apartment blocks are rare in the CBD and highly popular when the quality ones come up for sale. The property sold well beyond its $1,250,000 reserve after selling in 1996 for $400,000.
3/44-46 James Street, Northcote Sold for $850,000
Its not often you see a property sell under the hammer with one bid, but this is what occurred at the two bedroom townhouse auction. Three prospective bidders attended the auction but only one raising their hand to bid at the quoted price which was enough to take the property off the market.
24th and 25th November 2018
This week: 757 Auctions
Last Year: 69% [source: REIV]