Power switch to buyers
MORE home buyers are prepared to walk away from auctions empty-handed, showing the balance of power in Geelong’s property market is shifting after a year of big growth.
The region has recorded a 66 per cent clearance rate for auctioned properties so far in 2022, a clear sign the heat and sense of urgency that gripped buyers in 2021 has disappeared.
Auction clearance rates are a key indicator of a property market’s performance.
Last year, 75 per cent of Geelong auctions resulted in a sale.
PropTrack reports show the region’s median house price climbed more than 17 per cent to $780,000 in the 12 months to May.
Last weekend, 66 per cent of properties auctioned in Geelong found a buyer, but a growing number of sales were wrapped up after homes were passed in.
The clearance rate was 46 per cent two weeks ago.
Norlane achieved a 92 per cent clearance rate, while inner ring suburbs such as Herne Hill, Geelong West and Newcomb were also among the best, with sale rates above 80 per cent.
Seven of every 10 homes sold at Belmont and Highton auctions, while only
33 per cent of central Geelong auctions were successful.
Hodges Geelong West agent Marcus Falconer said suburb data showed properties in the central Geelong belt were incredibly popular.
“Any investment in that 10km radius of the CBD is still going to perform quite well and is still getting incredibly solid inquiry,” Mr Falconer said.
“The shortness in stock is keeping the prices stable and increasing, and I think that will continue to be what happens throughout the year.”
Buxton director Ben Riddle said buyers no longer feared missing out as prices stabilised. The rise in interest rates and the election also had a sobering effect.
“We had that massive high last year and people were acting irrationally,” Mr Riddle said. “The urgency to decide to buy now versus waiting for the market to go up in three months is not there now.
“People aren’t bidding at auction, they are reading the play and waiting.”
Though 23 Geelong homes are scheduled for auction this weekend, plenty are
awaiting the outcome at a Moriac property at 1.30pm on Saturday.
More than 105 groups have visited the renovated five-bedroom home at 9 Livinia Court during the campaign.
McGrath Geelong agent Mergim Ibrahimi said plenty were families with young kids or downsizers, with buyers seeing better value than closer to the coast.
“It’s caught a lot of people by surprise and there is an equal amount of people who would love the thought of owning it but cannot (because they aren’t in a position to buy) than the ones who are going to be there bidding,” Mr Ibrahimi said.