The auction clearance rate dropped back into the 60%’s on the weekend with 518 properties going under the hammer. 279 sold at auction and 67 sold before auction resulting in a clearance rate of 67%. There were an additional 250 private sales.
There is no doubt we have seen the property market stabilise and we have not experienced the decreases in property prices that many ‘so called’ experts first predicted. However, we are very much in a ‘two speed property market’ where some properties are selling much higher than expected, and then others are selling less for or exactly what the property is worth. There seems to be an inconsistency in the final result in which some cases results in the buyer doing well in their purchase, and then in some cases the vendor has achieved a high sale price. More records are being broken with a house in Bentleigh achieving the highest price for a residential house sold over the weekend.
Generally speaking, properties that are well located, updated and have a good floorplan are selling well under competition from multiple buyers. These properties have also been marketing correctly which means presented immaculately and priced accurately online. Other properties that are compromised such an being unrenovated, poorly located, inferior floorplans or not presented well are the ones that tend to be struggling. Buyers are still circling these properties but often waiting for them to pass in at auction, sticking to firm budgets when negotiating and making offers with ‘subject to finance clauses’.
I attended an auction yesterday at 1/21 Turner Avenue, Glen Huntly where there would have been almost 100 people in attendance. The three bedroom, two bathroom single level townhouse is well located, dated but immaculate and styled well with hire furniture for sale. The bidding was slow to start though with the auctioneer kicking off the auction with a vendor bid of $950,000. However five bidders participated with the buyers being a mix of first home buyers and downsizers. The property was quoted $995,000 to $1,090,000 prior to auction and sold for $1,190,000.
Have a great week.