FAST AND FURIOUS
Bidders out in force as auction clearances soar
MORE active buyers are out in force as Geelong’s auction market finished the second weekend in spring with a 91 per cent clearance rate.
While the number of homes going to auction is slowly rising from the traditional late winter slump, only a handful of the 27 properties offered to buyers at the weekend remained on the market yesterday.
Geelong’s preliminary auction clearance rate is up from 61 per cent the previous weekend and streets ahead of Melbourne, where 62.4 per cent of homes found buyers.
It was the best result in Geelong since February and a return to regular post-80 per cent results from auction, not seen since July.
Hayeswinckle East Geelong agent Stacey Hayes said, while buyer numbers had been constant from winter to spring, more had become serious as the weather warmed.
“I think it could be more active buyers because our numbers through our opens haven’t really gone nuts but in terms of converting them to bidders they are certainly there,” Ms Hayes said.
She said new listings data was showing good signs for stock volume over spring.
“We have had one of our strongest months in August in terms of new listings,” she said.
“It’s starting to come on now, or they’re earmarked for October auctions, so that’s a good sign.”
McGrath, Geelong, agent Will Ainsworth said motivated buyers were having an impact.
“We’ve been finding the numbers we’ve had through our open homes have declined a little bit but I think the quality of buyers are still there,” Mr Ainsworth said
“It’s not taking away from the interest in each property, that’s a really good stat.”
He said properties marketed with price guides had also attracted more interest.
Maxwell Collins, Geelong, agent Shaun Carroll said there were a lot of first-home buyers, downsizers and investors, particularly for properties in the more affordable price brackets.
Mr Carroll said the performance of the Geelong market seemed to not be impacted by a slowdown in price growth in Melbourne and Sydney.
“We hear all this doom and gloom and it hasn’t really affected the Geelong market,” he said.
“It will be interesting to see will it continue.”
CoreLogic data shows median house prices across the City of Greater Geelong had risen 12.2 per cent over the year to hit $505,000.
At the same, annual growth in Melbourne was 7.2 per cent.
Mr Carroll auctioned a three-bedroom Highton unit for $485,000 after 52 bids from six bidders, made up of downsizers and first-home buyers.
The home at 2/6 Corland Drive sold for $80,000 above the reserve price.
But the city’s most expensive auction sale was a fourbedroom Malishev house at 39 Sharp St, Newtown, which sold after auction for $1.225 million.
CoreLogic Victorian director Geoff White said auctions provided a yardstick for the real estate market, even though public sales represented about a quarter of property transactions.
“The Geelong market throughout the course of the year has been very strong,” Mr White said.
He said the Geelong market was driven by affordability, with its proximity to Melbourne drawing more buyers.
This weekend will provide a bigger test, with 39 properties scheduled for auction.