Developers battle with home buyers in October.
Over the first two weekends of October more than 1,383 auctions were recorded by the Real Estate Institute of Victoria (REIV). 821 homes were sold at auction with 301 passed in, 130 on a vendor bid. In the first half of October the clearance rate has averaged 75% – slightly down on September’s 77%.
Auction numbers in the first half of October are up 9.1% from September (1174). More sellers are listing, prompted by the keen buyers out there. It’s a loop that’s gaining momentum.
Competition at auctions is tough as home buyers battle with developers. One auction in Ascot Vale on October’s second weekend went $240,000 over reserve, with a developer eventually running it out with $50 bids to wear his competitor down, and finally win.
The Australian Financial Review reports Melbourne house prices have rebounded about 3.5% in the last three months and is predicting national growth of 10% over the next 12 months.
The blue-chip end of the market is coming back fastest with strong value growth. In the top quartile of the Melbourne market values are up 4.6% over the September quarter (CoreLogic). That’s a big jump. Reserves were smashed on October’s second weekend right around inner Melbourne in Ascot Vale, Seddon, Sandringham, Burwood and Wheelers Hill.
There’s plenty of vitality across the board. Agents in St. Kilda where the unit market had been flat across 2018, report very high demand for flats in the $500,000 to $800,000 range, with entry level and first home buyers looking for an inner city foothold.
It’s flatter in the rent market though. According to new data from Domain’s ‘Rental Report’ Melbourne house rents stayed flat over the last 12 months with a median of $430 a week. But unit rents increased by $10, to $420 a week. A contributing factor is the growing popularity of apartment living, plus the apartment construction boom, combining to put a lid on house rents.
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