Gath­er­ing mo­men­tum

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

MO­MEN­TUM is the buzz word for the mo­ment.

There’s hardly a cricket press con­fer­ence with­out a skip­per talk­ing about tak­ing the mo­men­tum from a pre­vi­ous win into their next game.

But more to the point in th­ese pages, is mo­men­tum a phe­nom­e­non that can af­fect the prop­erty mar­ket?

Judg­ing by the move­ment in the auc­tion clear­ance rate this month, it is.

Mel­bourne’s pre­lim­i­nary auc­tion clear­ance rate for last week­end was 74.9 per cent across 1049 auc­tions, ac­cord­ing to CoreLogic RP Data fig­ures, com­pared to 70.9 per cent the pre­vi­ous week.

This time last year, Mel­bourne’s clear­ance rate was a lower 73.5 per cent, but with al­most 350 more auc­tions.

CoreLogic RP Data Vic­to­rian auc­tion spe­cial­ist Robert Larocca said Mel­bourne’s clear­ance rate had lifted 15 points in two weeks.

“Last week’s mo­men­tum has been car­ried into this week, with solid de­mand ev­i­dent in Mel­bourne,” Mr Larocca said.

This week­end, there are about 1400 auc­tions sched­uled.

“This is the sec­ond week with over 1000 auc­tions for the year and vol­umes at auc­tions have risen to a level that is sim­i­lar to last year now,” he said.

But the num­ber of homes listed for sale last month was about 1.8 per cent down on the same time last year, although CoreLogic RP Data also re­ports the num­ber of homes be­ing pre­pared for sale is up slightly.

“It sug­gests con­sumers are still ap­proach­ing the mar­ket with cau­tion,” Mr Larocca said.

How­ever, Har­courts Thomas­town and Ep­ping direc­tor Tony Lom­bardi said there were signs that con­sumer con­fi­dence is lift­ing. And it’s giv­ing mo­men­tum to the prop­erty mar­ket.

“Once Fe­bru­ary kicked in it was like De­cem­ber con­tin­ued,” Mr Lom­bardi said. “There is some pretty strong com­pe­ti­tion in the mar­ket­place.”

Mr Lom­bardi said new list­ings weren’t as free-flow­ing as late last year, but com­pe­ti­tion from buy­ers was driv­ing up the clear­ance rate, and prices.

“The ven­dors putting their prop­erty on the mar­ket are re­ally cap­i­tal­is­ing on some re­ally good re­sults and hence why we’ve had some re­ally over the re­serve prices,” he said.

A mod­ern four-bed­room home at 82 Hayston Blvd, Ep­ping, sold $123,000 above re­serve for $673,000.

At Thomas­town, five buy­ers en­dured a 35-minute auc­tion in 35C heat be­fore a home at 38 Arndell St sold for $596,500, $46,500 above re­serve.

This Ep­ping prop­erty sold for $673,000 at auc­tion last week­end, $123,000 above re­serve.

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