Melbourne Auction Results 31st August 2015
Could this Spring’s auction market surpass 2014? Peter Sarmas discusses the impact of last week’s stock market correction on this weekend’s auction results. He also looks at recent predictions made around the performance of Melbourne’s property market this Spring.
Clearance Rate: 78%
Reported Auctions: 950
Sold at Auction: 589
Passed in: 209
Sold Before: 152
Sold After: 0
Auction Volumes: $730.83m
Last Weekend: 853
Last Year: 810
Houses: 82%
Units: 69%
A clearance rate of 78 per cent was recorded this weekend compared to 73 per cent last weekend and 73 per cent this weekend last year. There were 950 auctions reported to the REIV this weekend, with 741 selling and 209 being passed in, 89 of those on a vendor bid.
The suburbs with the top auction sales in the year to date were Reservoir with 387 auctions, followed by Glen Waverley with 306 auctions and Richmond with 298 auctions.
Stock Markets Plummet And Melbourne Auction Market Is Tested
In what was the coldest August Saturday for 26 years, Melbourne recorded a stunning recovery in the clearance rate up to 78% from 950 auctions (REIV). This was a definite improvement on last week’s 74% clearance rate, the lowest since February this year and perhaps an aberration?
Several real estate groups reported strong clearance rates over the weekend, as families and homebuyers outbid investors to secure a property. If my auction experience on Saturday (see below) was any measure of the property market it appears that Melbourne is just about to kick up another gear.
This Spring season looks huge and is set to surpass the number of auctions we experienced last year. Nigel O’Neil from Hocking Stuart saying the company is on track to having 50% more auctions booked in September (The Age).
With clearance rates expected to remain at between 75 and 80 per cent over spring, according to APM’s Andrew Wilson, there is no doubt it will still remain a sellers’ market until the end of the year.
Recent data released by the Reserve Bank of Australia supports the view that a number factors are helping to spur consumer spending. Lower fuel costs, lower interest rates and higher property prices are the main drivers helping to lift profits for retail giants Harvey Norman and JB Hi Fi, both announcing strong increases in sales since the start of this year.
And what of the stock market crash, sorry correction, we had to have last Monday? Seemed to be a blip on the radar for many and a reason to pile into more stocks at bargain basement prices. There certainly was no ripple effect into the property market over the weekend. If anything, some experts are predicting a reassessment of investment portfolio by SMSF holders and conservative investors resulting in a shift to bricks and mortar, away from shares.
So in the short term, or at least the end of this year, all indicators are that Melbourne property should remain strong. However I am expecting some softening as certain vendors get ahead of themselves on price and competition among sellers intensifies.
Just a quick tip coming into September, if you are thinking of selling your home this year, stay away from the AFL finals period and start your campaign after the first week in October.
Street Advocate
Image Source: barryplant.com.au/bundoora/
2/17 Rushworth St, Watsonia
This week we were out in the ‘burbs’ to try and buy an investment for one of our clients. Read More
Top 5 Houses
- 26 Abercrombie St, Balwyn $4,205,000
- 385 & 387 Burwood Hwy, Burwood $3,988,000
- 2C Fordham Rd, Hawthorn $3,800,000
- 22 Young St, Albert Park $3,700,000
- 44 Malin St, Kew $3,225,000
Top 5 Bargain Houses
- 33 Richards St, Lalor $275,000
- 10 Evans Court, Broadmeadows $335,000
- 65 Dallas Dve, Dallas $340,500
- 17 Gerbert St, Broadmeadows $342,000
- 11 Redheugh St, Craigieburn $343,000
Top 5 Apartments
- 2/14 King St, Balwyn $1,755,000
- 21A Bright St, Brighton East $1,500,000
- 17B Draper St, McKinnon $1,335,000
- 5/221 McKean St, Fitzroy North $1,330,000
- 37A Cromer Rd, Beaumaris $1,290,000
Top 5 Bargain Apartments
- 9/294 Nicholson St, Seddon $263,000
- 7/150 Rupert St, West Footscray $290,000
- 5/28 Hampton Pde, West Footscray$305,000
- 1/27 Broadmeadows Rd, Tullamarine $314,000
- 25 Village Ave, Taylors Lakes $319,000
Source: REIV
