Last week saw a drop in auctions but a significant increase in private sale transactions. This is due to a less competitive market where agents/vendors will opt to sell via expressions of interest or private sale rather than auction. There is also an increase in off market activity. There were 610 auctions reported on the weekend with 325 selling at auction, 95 selling before auction and an additional 286 private sales.
The federal election nervousness and shock felt from the first interest rate rise seems to have eased. Whilst we have seen a slight increase in the clearance rate over the past week, signs are still indicating we are in a stable/balanced market and a feeling of a normal, winter property market. As we have been in unusual circumstances over the past couple of years, I believe many have forgotten what a normal winter’s property market feels like. Vendors hold off from selling, buyers hold off from venturing out to inspect and buy, but the % of buyers and sellers remain stable. This is exactly what the property market feels like now. The auctions and opens we attended on the weekend all had reasonable numbers.
Properties that are unrenovated, on main roads, on train lines and generally just compromised in some way, are the ones that are only attracting a limited amount of buyers in the current market. Properties that are ticking all the boxes (being on quiet streets, renovated, good floor plans and so on) are still gaining strong interest. 61 Walker Street, Clifton Hill sold well above its reserve price in a competitive auction. Interestingly, the tv series Stingers was filmed there. The well located, three bedroom, two bathroom, two car home home was announced on the market after the first bid. The competitive auction resulted in the property selling $530,000 over its reserve achieving $2,680,000
An unrenovated property that sold in the middle of the lockdowns in 2020 for $1,120,000 went under the hammer after some minimal cosmetic updates. The auction of 21 Mount View Street, Aspendale attracted five bidders. The property was quoted for $1,190,000 to $1,290,000 prior to auction and had more than 100 groups attend its open for inspections. Five bidders participated in the auction where the property sold for $1,510,000.
Have a great week.