There were 439 auctions reported to the REIV on the weekend resulting in a clearance rate of 66%. 220 sold at auction and 71 sold before auction. There were an additional 177 private sales. It seems the clearance rate is sitting steadily in the mid 60%’s with last week’s final clearance rate being 67% on 506 auctions.
With less competition in the market, some buyers are feeling now is a good time to buy. Whether this be first home buyers who have struggled to enter the market or upsizers who are looking for more space. Over the past 12 to 18 months, there have been a huge increase in demand for families wanting more space due to many working now from home. But also generally wanting more space which resulted from being locked down for so long over the past two years. This demand had resulted in many family homes achieving huge prices under strong competition from multiple parties.
The current market is resulting in more auctions passing in, but many properties are selling immediately after. This demonstrates there are less buyers in the market, but some that are still willing to purchase. Some vendors are having to make price adjustments in order to sell their properties which in turn is benefiting the buyers who show up to the auction. For an upsizer, this can greatly be beneficial with the discount on the higher price point exceeding the discount they may need to give whilst selling their smaller home.
11 Hamilton Street, Brunswick West went to auction on the weekend and attracted two bidders before passing in. The structurally renovated four-bedroom, two-bathroom home was quoted at $1,500,000 to $1,550,000 prior to auction. The property passed in on a genuine bid of $1,500,000 and sold immediately after for $1,560,000.
10A Corhampton Road, Balwyn North is a dated, three bedroom, two bathroom single level villa unit which was quoted at $1,500,000 to $1,600,000 prior to auction. Four bidders participated in the auction with the property being announced ‘on the market’ at $1,550,000 and sold under the hammer for $1,705,000.
Have a great week.