Super Saturday – Super outcome
As always, the following in no way constitutes financial advice and no warranty is offered as to its accuracy or validity. The reader is to make their own inquiries prior to making any decisions.
Saturday 27th October’s clearance rates have shown a slight improvement, with Buyers and Vendors starting to come together in the market again. Our office cleared a 100% outcome for our Auctions with several interested parties on each property. For those Buyers who missed out, we have already booked them in to see several homes in the first few days of this week.
For Melbourne Metro, the published clearance rates (PCR) for the weekend was 52%. An increase of 2%, which considering the increase in volume of choice for buyers of around 700 auctions, this is a good sign in the market. 632 were reported as sold with 583 passed in, and 78 either withdrawn or postponed. Of those reported, 867 were houses (50% sold), 335 apartments (58% sold) and 11 being registered as land sales. Looking deeper into the numbers over the weekend there were 1,771 Auctions scheduled (677 more than the previous week and about 220 less than 2017) with results for 1215, or 68% reported. Without counting any unreported results as sold, that would show a stable clearance rate of 35%.
In the previous 8 weeks in the lead up to the 27th October, there were 4,588 houses taken to auction with over half of all Vendors selling, while units Owners showed a stronger result of nearly 60% of all Owners (2,230 Auctions) having success on the day so far this spring. This doesn’t include the many owners who would have likely sold in the week or two after their Auctions.
“The Block” Auctions all went off without a hitch and while they are in many ways isolated from the normal happenings on the market, with millions of dollars in marketing, celebrity momentum and appointed fixtures (depreciation benefits), the optics on the general public’s perception of Real Estate generally should not be discounted. Clearing their reserves by $200,000 to $500,000 is always a good thing.
Heading into last Saturday, the number of open for inspections has stabilised also with Port Phillip offering 149 scheduled opens. Boroondara and Wyndham still sat around 200 (maximum displayable) in each zone.
The reported outcomes for the areas are as follows;
- Albert Park – Middle Park – Port Melbourne – St Kilda West – South Melbourne; 57% PCR (-29%) (100% for our office)
- Southbank – Melbourne; 50% PCR (-17%)
- Werribee – Werribee South – Wyndham Vale – Hoppers Crossing; 100% PCR (several unreported results)
- Glen Iris – Armadale – Hawthorn – Hawthorn East; 45% PCR (-9%)
- Seaholme – Williamstown – Newport; 9% PCR
Over the coming week or two, many Auction campaigns that wish to run in 2018 must come onto the market with the 8th December, probably the latest anyone should run an Auction Campaign, only 6 weeks away. As mentioned previously, the optics of all The Block properties has likely helped keep some warmth in the market and while clearance rates are well down on last year, they are stable and stability is one of the main driving factors to underpin the next round of growth.
When looking into a property, it is important to understand the timeline and outcomes as a buyer and while past performance is no guarantee of future activity property it is still one of the major foundations or Australia’s wealth.
House in Ingles Street – Port Melbourne (125sqm)
18th October 2018 – $940,000
25th July 2011 – $715,000
19th November 2007 – $630,000
26th May 2001 – $351,000
22nd March 1997 – $194,000
1st September 1993 – $158,500
1st June 1988 – $140,000
In the week ahead, the inner city can be quiet with the Melbourne Cup and Derby Day being a focus for many residents, however, serious buyers will buy and look no matter the day, weather or events which are happening.
If you have any property needs or questions, please feel free to contact me for a confidential chat. Additionally, if you would like to be updated once a blog is up, please feel free to subscribe with your email on the right-hand side of this page. No spam, only blog posts.
Licensed Estate Agent
0419 536 905