23RD SEPTEMBER – CLEARANCE RATES (PCR) – 57%

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.

I like to track select markets out to the fringes of Melbourne to get a better idea of market movement; as each market has relevant impact and is influenced by differing things.

For Saturday 23rd September the published clearance rates (PCR) for the weekend where 57%.

With 455 sold, 346 passed in and 50 either withdrawn or postponed. Of those reported, 550 houses (54% sold) , 241 apartments (63% sold) and 9 being registered as land sales.

Looking deeper into the numbers over the weekend there were 1,189 Auctions Scheduled with 801 or 67% reported. Without counting any unreported results as sold, that would show a clearance rate of 38%. This is around 10% lower than what I have seen over the previous months which seems to be around the 42%-55% range.

In Williamstown our RT Edgar Network had a fantastic result with the property at 17 Coutris Street going $350,000 above it’s reserve. A crowd of about 150 watched the Auction with a $1.9 million opening bid. Rapid bidding took it past the $2.2 million reserve. 46 bids took it to $2,550,000 where it sold.

It is clear that over the past week the media has been having a field day with their 40% dire warning, which several (8-10) people have asked me about it, so it is clearly weighing on the mind of the market.  Will there will be a pullback, possibly, probably with all the goings on at the moment.  Many areas are seeing it at the moment and have been seeing it since the start of 2018.

How much? That depends on the govt, how long….dito. Population and policy, either outright money printing by the RBA, or incentive base rewards are the key, and knowing that politicians and bankers are dependent on the market having some semblance of stability keeps my confidence high that looking into 2019 stability will again be found.

Banks are causing us the largest issue at the moment, with several clients having to re-evaluate their purchasing power.  Not 8 months ago a client could get $800,000 for example, yet now they are able to look at properties in the $600,000 mark with no changes to their personal life outcomes.

With relation to some specific demographic areas the week went as follows;

• City of Port Philip – 46% PCR

• Southbank/Melbourne – 50% PCR

• Werribee/Werribee South/Wyndham Vale/Hoppers Crossing – 29% PCR

• Glen Iris/Armadale/Hawthorn/ Hawthorn East – 66% PCR

• Seaholme/Williamstown/Newport – 44% PCR

In the coming week it will likely be a quiet market, School Holidays and Grand Final will play a major role, about 100 Auctions are scheduled.

Between Grand Final and Melbourne Cup weekend there is going to be a rush of properties. It’s a 4 week perfect storm and on the 4th weekend last year there were 1,983 Auctions on the 28th October 2017.

It will be interesting to see what is on the market come Saturday week.

Jonathon Bird

Licensed Estate Agent

0419 536 905