Dear Fellow Property Investor,
Melbourne’s auction clearance rate has jumped above the 80 per cent threshold as confident buyers jump back into the market, preliminary figures show.
There were 596 auctions held in Melbourne on Saturday, a slight lift from recent weeks as winter draws to a close.
By evening, Domain Group had recorded an 81.2 per cent clearance rate from 456 reported results.
Housing market sentiment has been picking up since the May election result, with two cuts to interest rates and a regulatory move to let buyers borrow more money also boosting confidence.
Preliminary clearance rates have been edging above 70 per cent in recent weeks, picking up from figures below 50 per cent late last year. For the month of July, the final clearance rate was 67 per cent.
Despite commentary suggesting that a lack of homes for sale in ‘Key Suburbs’ has pushed up clearance rates, analysis this week showed that historically, the opposite was true, with higher clearance rates in months with more auctions. Auctioneers on the ground have also reported a shift to higher starting bids and faster-paced proceedings.
Even so, some buyers are unwilling to send prices too far above vendor expectations.
As a result, buyers are paying hundreds of thousands more than the vendors’ asking price at auction for select prized properties due to the uncharacteristically low winter stock levels, agents say.
An inner-north couple forked out $225,000 more than the reserve for 12 Batman Street, Fitzroy North, after a hot auction on Saturday.
Bidding for the Victorian terrace opened at $900,000, below the quoted range of $950,000 to $1,045,000.
It quickly shot past the reserve of $1.05 million and then sold for $1,275,000.
In Melbourne’s iconic suburb of Hawthorne East, 85 Rathmines Rd, Hawthorn East shattered its reserve by $471,000, selling for $2.351 Million!
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