Clearance rates lift in May. And a windfall for First Home Buyers.
Over May’s first 2 weekends more than 939 auctions were recorded by the Real Estate Institute of Victoria (REIV). 436 homes were sold at auction with 324 passed in, 134 of those on a vendor bid. This far in May the clearance rate has averaged 61%, progressively up on April’s 56.5% and March’s 55%.
Auction numbers have been light so far in May – almost exactly half the number as this time last year (1698 auctions). Melbourne has had a bit of a glut of listings but this is selling down more now, because new listings have eased off, with many potential sellers holding back at the moment. Some spooked by falling values, others waiting to see how the election goes. But the clearance rate is edging up, and in May has reached its highest point for the year.
A recent successful Buyer Marketing acquisition was 6 Rando Court, Frankston South. A classic 1960s retro home nestled in what is known as old Frankston, close to Olivers Hill. It’s a beautiful location close to the bay, shops, restaurants and station. Originally the owner was hopeful of achieving around 850k after looking at comparable results. Buyer Marketing negotiated a purchase for $750,000 – a great outcome for our client!
Thanks to the election 2019 is turning out to be a very good time to be a first home buyer. Scott Morrison has promised further help, allowing the purchase of homes with deposits of just 5% of the price. Bill Shorten immediately matched the promise too. This will be a good stimulus for the housing market, although it’s likely to boost prices at entry level property auctions, as more buyers compete.
Principal Advisor &
Licensed Estate Agent
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