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Private sales surge in October as buyers get in early!
Over October’s first two weekends the Real Estate Institute of Victoria (REIV) recorded more than 1,582 auctions. 1,197 properties sold, 847 at auction, with 222 passed in. 350 properties were sold before auction with 0 properties selling after auction. The clearance rate averaged a very high 84%. 1,187 homes were bought by private sale.
So far this October there have been more than twice as many private sales as last year. 1,187 compared to 602. It’s a clear trend towards negotiated sales.
Competition is tough
Rate cuts have lifted borrowing power and buyer confidence across Melbourne, so competition for quality homes is tough and it’s causing the surge in pre-auction sales. Many vendors are happy with an offer they think hits the mark, rather than waiting for the uncertainty of auction day.
Assessing values in a rising market can be tricky!
Because it’s a rising market auctions are sometimes going $100,000 to $200,000 above advertised ranges. At auction a buyer can get priced out if there’s an upwards bidding spiral. This happens because it’s not so easy for agents to value properties really accurately right now.
Don’t get pipped at the post! Negotiating skills make the difference.
If a pre-auction offer comes in above the advertised range, a seller is likely to accept it. Buyer Marketing has the experience to advise you on how to make the right kind of pre-auction offer. And if the house goes to auction we are there, in your corner. If it’s passed in, we’ll be there negotiating for you post auction, to secure the home you want.
What’s happening with values right now?
According to real estate analysts PropTrack, Melbourne had a 0.5% home price rise across September adding to the last 12 months’ growth of 3.4%. Melbourne’s median value is $839,000. This brings Melbourne back to the market peak it hit in 2022.
What’s the outlook ahead?
With interest rates expected to move even lower we can expect steady growth in values. Affordability is always a brake on the pace of price growth, but comparatively, Melbourne is coming off a lower base than most other capitals. Melbourne’s one of the least expensive. Average buyers in Brisbane, Perth and Adelaide have all paid more for homes than Melbourne buyers over the last couple of years. Now is a great time to buy well here!
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Peter Fox
Principal Advisor &
Licensed Estate Agent
Buyer Marketing

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