Winter buyers running hot.
Over July’s first 2 weekends more than 592 auctions were recorded by the Real Estate Institute of Victoria (REIV). 339 homes were sold at auction with 142 passed in, 61 of those on a vendor bid. In the first half of July the clearance rate has averaged 73%, shooting up on June’s 67.5% and May’s 62.5%.
Auction numbers are very low which is typical for mid-winter and school holidays, but totals are actually sitting about 40% lower than the same period last year. However this dwindling supply, plus good buying conditions, means clearance rates are very
The market is still stabilising with a lot of caution out there but people are willing to charge in for the right kind of property. Agents are reporting some auctions are getting way over reserve again.
Bentleigh East was Melbourne’s busiest auction suburb on July’s first weekend and actually notched up a 100% clearance rate. On Saturday July 6, Seven bidders competed for a modest cream brick home on a large block at 16 Marlborough St, selling for 1.07 M.
Real Estate Agents are saying investors are also getting more active again at inspections and auctions. This is not surprising because investors know a low market is an optimum time to buy.
Back to back interest rate cuts, plus income tax relief, plus easier lending requirements are giving home hunters a real boost in confidence. But despite some keen homebuyers out there consumer spending is down, as people save and try to pay off big mortgages. Saving is great for reducing personal debt but not so good for the economy and has the financial authorities worried. The Reserve bank is running out of interest rates to cut. What a great time to borrow!
Principal Advisor &
Licensed Estate Agent
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