Masks were off over the weekend and bidding was fierce at some auctions. The REIV clearance rate was 84% on 937 auctions. 592 sold at auction, 195 sold before auction and there were an additional 194 private sales.
There is a huge interest in property at the moment, not only in Melbourne but across the state. The after effects of multiple lockdowns have seen many people rethink their way of living. The number of vendors selling due to a seachange or treechange has increased dramatically. On the flipside though, we have also experienced high level of enquiries of expats wanting to buy a base in Melbourne with a view of coming home over the next couple of years. There has also been an influx of Sydney buyers wanting real estate in Melbourne or Regional Victoria (mainly Geelong and Ballarat).
The demand in the upsizer market is putting strong pressure on the housing market, this has been caused by a large number of people rethinking about the type of property and space they need due to spending so much time at home over the past twelve months. Extra bedrooms, study’s and reasonable sized backyards are on the wish list to allow more flexibility to work from home and space for children to run around.
Over the weekend, there have been many reports of properties selling well above the advertised price range and the vendors reserve. While some of this has been caused by the increase in buyer demand, I do believe that some advertised price ranges are low and not in line with current market value. This is mostly not due to the agent under quoting the property, rather than vendors having extremely realistic reserves and at levels where prices were last year. Over the next few months that gap should decrease as vendor’s expectations start to rise due to the rising market.
The auction of 20 Cowper Street, Sandringham was of interest to many buyers. The property was a three bedroom, two bathroom original mid-century home on approximately 390 sqm of land. The appeal of the property was the location and the architectural uniqueness of the home. The property was quoted for $1,300,000 to $1,400,000 in the first week of the campaign but due to high interest levels was raised to $1,500,000 to $1,600,000. The property was announced on the market at $1,650,000 but what was interesting was the level of interest above this. There were still five bidders above $1,900,000 and three bidders above $2,000,000. The property sold for $2,105,000 to what appeared to be an owner occupier.
Another rare property to sell well above reserve was 15 Waltham Street, Flemington. The Victorian home on 500 square metres was hugely popular with the opening bid of $2,000,000 exceeding the reserve and putting the property on the market. The property sold for $2,560,000 which was $610,000 above the vendors reserve.
Interestingly, properties that were on the market last year and could not sell have been relisted and being snapped up quickly.
Have a wonderful week.