This article is from the Australian Property Journal archive
THE median price of homes sold at auction has dropped by 5.1% from $725,750 to $690,500 as buyers shun expensive properties.
On the other hand the REIV September quarter property update shows the median price for homes sold privately fell only 1% from $485,000 to $480,000 since the June quarter.
CEO Enzo Raimondo said buyers at auction are demanding more affordable homes.
The update also shows the median house price in metropolitan Melbourne has dropped to $551,000, down 2.8% from $567,500 — reversing the small gains made in the June quarter.
The result was similar in the unit and apartment market, where the median dropped by 2.3% from $467,000 to $465,500.
“We are now experiencing a soft housing market.
“The lesson from the GFC, when the median fell by 14%, is that the market will remain subdued until confidence improves in the economy or there is stimulus in the form of lower interest rates,” he added.
However Raimondo said the surge in population between 2005 and 2010 are still bolstering demand in the more affordable suburbs.
Across Melbourne this means that the outer suburbs have recorded an overall better result compared to the inner suburbs.
Deer Park has recorded the strongest growth of all suburbs over the past year. Positive growth over the year has also been recorded in Wyndham Vale, Sunbury, Caroline Springs, Berwick, Hawthorn and Balwyn.
Demand in regional Victoria has largely mirrored that in Melbourne, with the median price of a house dropping by 3.1% to $310,000 from $320,000 in the June quarter.
Of the main regional centres, Geelong has recorded a very healthy increase of 5.7% to a median house price of $390,000. In Ballarat prices were stable, with the median of $285,000, and in Bendigo there was a 2.6% reduction to $277,500.
Last weekend the auction clearance rate was 55% from 633 auctions and 349 sales, which is a slight improvement from 51% a week earlier, but is below the rate of 66% recorded in the same weekend last year.
A total of 284 properties were passed in of which 192 were on a vendors bid, whilst 63 auctions did not disclose a result.
Approximately $239.11 million worth of properties were sold last week by auction whilst there were 479 private sales totalling $220.04 million.
The number of properties going under the hammer is starting to climb, next weekend 880 homes have been offered for sale, which will is expected to test the auction market.
Last weekend in Sydney the clearance rates also improved, according to Australian Property Monitors’ Home Price Guide.
There were 415 properties listed, and 281 were reported for auction of which 182 sold resulting in a clearance rate of 55%, which is up from the previous weekend’s rate of 53.2% on 398 auctions and 197 sales.
The total value of sales was $140.8 million, which remains below the same weekend last year’s result of $229 million.
The most expensive property sold was five bedroom house at Strathfield for $1.81 million and cheapest was a two bedroom unit at Wiley Park for $240,500.
Elsewhere in Adelaide, there were 38 auctions and nine sales totalling $4.7 million. Brisbane also has 38 auctions but sold only one home totalling $500,000.
Australian Property Journal
