This article is from the Australian Property Journal archive
MELBOURNE’S residential property auction market is facing an influx of houses on the market.
According to the REIV, 924 properties were auctioned last Saturday and 631 sold, whilst 250 were passed in, 167 of those on a vendors bid. This resulted in a clearance rate of 73% — below the 80% mark for the fourth week in a row.
Independent data from Australian Property Monitors’ Home Price Guide shows clearance rate have fallen below the 70% mark, APM recorded a clearance rate of 68.9% for the previous week and preliminary data suggests Melbourne’s clearance rate is 66.1% for last Saturday.
President Enzo Raimondo said there has been a shift in the residential property market in Melbourne over the past month, with six successive interest rates and unseasonably high auction numbers having an impact.
On this weekend last year there were 667 auctions and a clearance rate of 82%.
“The number of homes on offer at auction is at the same level we normally see in the spring selling season and, in that context, clearance rates remain very healthy, this does provide buyers with a better opportunity than was the case earlier this year.
“Over the next fortnight there are over 1870 homes scheduled for auction, compared to 1140 last year and 1240 in 2008,” he added.
The total value of properties sold by auction was $497.27 million.
The private sales market had 685 transactions totaling $322.03 million.
Meanwhile Australian Property Monitors’ Home Price Guide shows Sydney’s auction market has continued to decline for the past four weekends. Last Saturday there were 643 auctions and 186 sales, resulting in a clearance rate of 59.6% — compared to 485 auctions and 275 sales a week earlier.
The total value of properties sold was $141.6 million down from $213.5 million previously.
Since slipping more than four weeks ago, Sydney’s market is now underperforming when compared to last year. This time last year there were 416 auctions and 282 sales representing a clearance rate of 71.9% — totaling $194.1 million.
The most expensive property sold was a four bedroom house in Balmain East for $3.75 million and cheapest was a three bedroom house in Blackett for $220,000.
Adelaide had 44 auctions and 11 sales totaling $3.8 million and Brisbane had 56 auctions and just seven sales totaling $2.1 million.
Australian Property Journal
