Low winter stock should bounce in Spring.
Over August’s first 3 weekends more than 1,341 auctions were recorded by the Real Estate Institute of Victoria (REIV). 763 homes were sold at auction with 274 passed in, 127 of those on a vendor bid. In the first half of August the clearance rate has averaged 76%, up again on July’s 73%.
Clearance rates reached new highs for 2019 in August and the landscape for buyers is changing yet again. At prime locations across Melbourne agents are reporting multiple bidders at auction. This is very different from late last year when bidders were nearly absent and sales were usually negotiated some time after the auction.
Some locations in the eastern suburbs are really firing up with home buyers competing against investors and developers too. Box Hill is one example. It’s future as an urban hub is producing hotspot energy. This is also flowing into surrounding suburbs. Box Hill High School’s reputation keeps growing which adds to the attraction there. According to realestate.com the most home buyer searches since the election have been for Melbourne, Richmond and Burwood. Followed by Croydon and Chirnside Park, Berwick and Pakenham. So the stiffest competition for buyers is flowing east right now.
Buyer demand across Melbourne is strong though but stock is only drip feeding in. If this continues into Spring the competition will certainly drive prices higher. Sellers have been holding back so far in 2019 and waiting for real proof of a recovery such as houses shooting above reserves. When prices are really on the rise we will see a lot more homes for sale. But then, one effect of a big increase in homes for sale could be downward pressure on prices!
So some agents are urging home sellers to take advantage now. Quote of the month came from an eastern suburbs agent – “Your house might look better in Spring but the price probably looks better right now”.
Principal Advisor &
Licensed Estate Agent
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