Crowds keep coming in strong March market.
Over March’s first two weekends more than 1,241 auctions were recorded by the Real Estate Institute of Victoria (REIV). 656 homes sold at auction with 335 being passed in, 147 on a vendor bid. In the first half of March the clearance rate has averaged 72%, down on February’s 76.5%.
Melbourne’s Moomba public holiday meant fewer auctions scheduled for that long weekend but property buyers and spectators have continued to turn up in good numbers at auctions in March. Real Estate Agents are reporting no apparent drop in crowd levels despite caution in the community about coronavirus. Despite the unusual circumstances, people still want to buy homes.
Looking at the health of the economy, as long as the outbreak in Australia remains mild, it is likely there will be a modest and temporary dip in the property market only (Domain). ANZ claims ultra-low interest rates and pent-up demand from buyers means there’s plenty of energy to keep pushing the market onward and upward.
UBS has signaled that if worst-case outbreak occurs and pushes employment higher, this would cut the ‘UBS annual home price growth forecast’ of 10 or 12% gains over 2020, back to gains of just 5% for the year.
Pre-auction sales at an all time high
The recent trend in pre-auction sales is continuing. In fact, they are now at the highest level in a decade. In February 16.7% of Melbourne properties (578) were sold prior to auction (Domain data). Melbourne has been running at this high rate for months now.
For vendors, a pre-auction sale can relieve the pressure of going through the formal auction process. But on the other hand some vendors are keen to see the auction rolled out fully. The benefit for a buyer is a quicker sale. And it’s an opportunity to cut the competition out, and make sure an emotional and enthusiastic competitor doesn’t turn up and start bidding on auction day.
Principal Advisor &
Licensed Estate Agent
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