Testing time for auc­tions

Herald Sun - Property - - MARKET WRAP - WITH PETER FARAGO

VALEN­TINE’S Day seemed a good oc­ca­sion to get reac­quainted with Mel­bourne’s love for auc­tions, but it is the next cou­ple of week­ends that will show how much.

The city recorded a 67.4 per cent clear­ance rate across 565 auc­tions, com­pared to 60.7 per cent the pre­vi­ous week­end — the low­est clear­ance rate CoreLogic RP Data had recorded in 26 months.

CoreLogic RP Data Vic­to­rian hous­ing spe­cial­ist Robert Larocca said re­sults be­tween now and the Labour Day long week­end would be a lit­mus test for the state of Mel­bourne’s auc­tion mar­ket, which was send­ing mixed mes­sages at the mo­ment.

“On one hand, the clear­ance rate has risen to be closer to the trend rate for last year, when it was 68.2 per cent,” he said.

“In con­trast, vol­umes are low, sug­gest­ing that po­ten­tial ven­dors are lack­ing the con­fi­dence shown last year.

“It is also pos­si­ble that ven­dors and their real es­tate agents are choos­ing pri­vate sale in­stead of auc­tion as a method of sale. It won’t, how­ever, be pos­si­ble to as­cer­tain if that is hap­pen­ing for a few months.”

While there is a jump in auc­tions sched­uled this week­end to 939, it is still well down on the 1401 for the same time last year.

Among the big­gest sub­urbs for auc­tion ac­tiv­ity to­day are Rich­mond, St Kilda and Bentleigh East.

The lower level of stock on the mar­ket is giv­ing buy­ers more de­ter­mi­na­tion to buy at auc­tion, Barry Plant, Moonee Val­ley direc­tor Bill Karp said.

Mr Karp’s agency re­turned to the auc­tion mar­ket last week­end, with five out of six houses sell­ing un­der the ham­mer.

“(Last) Satur­day was go­ing to be a barom­e­ter for the start of the year, be­cause we had auc­tions in dif­fer­ent parts of Moonee Val­ley ... dif­fer­ent sub­urbs and dif­fer­ent price ranges,” Mr Karp said.

He said buy­ers had de­ter­mi­na­tion on their faces and a will­ing­ness to have a crack at the right prop­erty

Five bid­ders were at 136 Ep­som Rd, As­cot Vale, which sold un­der the ham­mer for $720,500, more than $45,000 above the re­serve. Mr Karp said there was a cor­re­la­tion be­tween scarcity of houses and strength of bid­ding.

“There’s a lack of sup­ply and as a re­sult more bid­ding, stronger bid­ding,” he said.

The top-sell­ing house last week­end was at 26 Ard­mil­lan Rd, Moonee Ponds.

Nel­son Alexander agent David Vaughan said the ren­o­vated cal­i­for­nia bun­ga­low with a north-fac­ing backyard at­tracted fam­ily buy­ers look­ing to be close to lo­cal schools.

Mr Vaughan said it was passed in at auc­tion for about $2.21 mil­lion, with ne­go­ti­a­tions tak­ing the sale price up to $2.44 mil­lion.

The top-sell­ing house at auc­tion last week­end was in Ard­mil­lan Rd, Moonee Ponds, sell­ing for $2.44 mil­lion.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.