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Auction Snapshot | 16 & 17 November

November 18, 2019 Leave a comment

Melbourne’s property market continues to go from strength to strength as it maintains strong auction clearance rates and buyer activity in the lead up to Christmas.

After pushing through the highs and lows of the 2018-19 downturn, the market has defied the expectations of many to make an unprecedently quick recovery. REIV President, Leah Calnan, said ‘Victorian property is a growth asset; anybody who bought in the market five years ago would see an amazing return.’

In fact, a recent report from The Australian Financial Review forecasts a surge in house prices of 11% for Melbourne over the next 12 months. Population growth, three interest rate cuts and loosened credit restrictions have all been attributed to the resurgence.

While the positive market conditions have proved encouraging for buyers, demand continues to outweigh supply as listing volumes have remained particularly low in recent months. Nerida Conisbee from the REA Group cites this as an early part of the recovery cycle, speculating the imbalance will lead to ‘strong prices rises in premium suburbs’.

In Fletchers news, the charming brick Californian Bungalow at 18 Fowler Street in Box Hill South pushed past the 2 million dollar mark at auction last Saturday. Originally on the market for $1,885,000, the 5 bedroom, 2 storey residence saw 4 bidders fight it out for the set of keys. Congratulations to our vendors on the highly successful outcome.

Results. It’s a Fletchers thing.

Categories: Auction Wrap

Auction Snapshot | 9 & 10 November

November 13, 2019 Leave a comment

With less than 2 months until Christmas, we’re encouraged to see yet another weekend of auction clearance rates sitting above 70%. The latest data from the REIV shows a significant improvement in clearance rates from this time last year, when they stood at a mere 50%.

Delivering a total auction volume of $499 million and private sale volume of $100 million for the week, AMP Capital Chief Economist, Shane Oliver, said the property market in Victoria had passed its first major test in keeping clearance rates high as more houses continue to be listed for sale.

‘When the recovery started, it was on low volumes [of homes for sale]. Volumes are still well below boom-time levels, but it looks like it’s back to a more normal market,’ he said.

Heading into the New Year, the Federal Government’s decision to widen the First Home Buyers Scheme is set to have amazing benefits for recipients, who will be encouraged to enter the market with a 5% deposit. Coming into effect January 2020, REIV states, ‘a 5% deposit will mean that a potential homeowner would only need to save $30,000 to purchase a property worth $600,000,’ meaning that this new wave of buyers is set to give an extra boost to the market and economy come January.

Results. It’s a Fletchers thing.

Categories: Auction Wrap

Auction Snapshot | 2 & 3 November

November 4, 2019 Leave a comment

The Melbourne Cup long weekend saw fewer auctions take place on Saturday. With a mere 146 properties scheduled under the hammer, buyers braving the cold helped deliver some big results across the state, culminating in a clearance rate of 74% and a healthy start to November.

Despite the pouring rain, Fletchers Partner & Auctioneer, Mark Fletcher, said that bidders were still out in full force, with an average of between 2 to 5 bidders seen at each Fletchers auction over the weekend. ‘It really shows the strength of the market since last year,’ he said.

Melbourne’s increases in house and unit values last month saw the 2.3 per cent jump become ‘the largest month-on-month gain since November 2009,’ according to data from CoreLogic Australia. With price rises tipped to continue into 2020, prospective buyers are being told not to wait to make their next move.

‘Values have risen now in the city for five straight months. Before that, they fell for 18 in a row. Victoria’s capital notched the nation’s highest quarterly growth of 5.5 per cent to a $650,197 median. This is shaping up to be a more rapid recovery than expected,’ according to the REA Group.

A standout result on Saturday included the auction of a 3 bedroom home at 24 Compton Street in Canterbury, which had five bidders fighting it out for the keys. The one-of-a-kind single level residence was sold by my team and I, who brought the selling price up to an incredible $286,000 more than reserve.

Results. It’s a Fletchers thing.

Categories: Auction Wrap

Auction Snapshot | 26 & 27 October

October 29, 2019 Leave a comment

The windy weather proved to be no deterrent from buyers who helped secure another solid weekend of auction results across Melbourne on Saturday. With 1067 auctions reported, this marks a significant increase from the 811 auctions that took place the weekend prior.

Across the group, we saw a noteworthy 60% of Fletchers properties which sold at auction sell above their reserve price, demonstrating increasing demand from buyers for more properties to hit the market.

Domain Research Analyst, Eliza Owen, echoed the same sentiment. ‘The strong demand, represented in clearance rates consistently over 70 per cent, is also showing in price increases across Melbourne. Domain data shows the median house price is up 4.1 per cent in Melbourne over the September quarter, and unit prices up 3.7 per cent.’

At present, the recovering market has been dubbed ‘the quickest turnaround ever’ from industry experts, with agents reporting ‘some sale prices close to, or above, those during the market boom between 2013 and 2017,’ according to Domain. This means homeowners still have time to capitalise on the strong sales conditions, with the surge in buyer activity expected to stretch out until Christmas.

Results. It’s a Fetchers thing.

Categories: Auction Wrap

Auction Snapshot | 19 & 20 October

October 21, 2019 Leave a comment

The latest data from the REIV has shown 14 consecutive weeks of auction clearance rates about 70 per cent across Victoria. Bringing in a total auction volume of $520 million, the weekend saw 652 properties go to auction and 180 properties sell via private sale.

At present, vendors now have their property on the market for an average of 34 days before a sale. This marks the lowest figure in more than a year, down from a high of 50 days on market in February. REIV Chief Executive Officer, Gil King, said ‘these figures demonstrate that demand for Melbourne property is outstripping supply. Spring is a traditionally strong sales period and with fresh demand from buyers, now is the time for anyone thinking about selling a house or a unit to act’.

According to Domain, ‘agents reported some huge sales at the weekend, with prices bouncing back from the lows of last year’. The recent increase in the number of interested and qualified buyers has created multiple opportunities to sell well within the current market, which has resulted in many properties selling well above their reserve at auction.

Results. It’s a Fletchers thing.

Categories: Auction Wrap

Auction Snapshot | 12 & 13 October

October 15, 2019 Leave a comment

Auction numbers have continued to perform well this month, with clearance rates finishing up at 77% over the weekend. The favourable weather on Saturday saw 708 properties go to auction, marking a slight increase from the 675 auctions that took place the weekend prior.

With similar levels of competition expected in the coming weeks, buyers continue to face an uphill battle as demand for supply continues to grow. CoreLogic Head of Research, Tim Lawless, said ‘the amount of stock on the market is still quite low but buyer numbers are rising because of interest rate cuts and the easing of credit restrictions. The clearance rate got as low as 41 per cent last year so this is a dramatic improvement’.

According to the REA Group, fear of missing out on the current market conditions is another factor creating a sense of urgency among buyers and sellers, resulting in many properties selling well above their reserve. Some of the best performing suburbs in the outer east over the last few months have included Wheelers Hill, Wantirna, Malvern, Mount Waverley, Mulgrave and Kew.

The team and I were thrilled to successfully sell the contemporary town home at 2/19 Hotham Street in Mont Albert for $1,410,000 post auction. A big congratulations to our vendors and the successful purchasers!

Results. It’s a Fletchers thing.

Categories: Auction Wrap

Auction Snapshot | 5 & 6 October

October 8, 2019 Leave a comment

With the Spring selling season off to a strong start, many agents are feeling renewed confidence in Melbourne’s property market, which seems to be making a resurgence from the 2017-19 downturn. Following the Grand Final long weekend, auction volumes bounced back on Saturday, with the REIV reporting 573 scheduled auctions and a clearance rate of 76 per cent across the state.

According to REA Group, this ‘follows a successful September, with weekly clearance rates consistently above 74 per cent’. As such, we are expecting to see an increase in vendors in the coming weeks as opportunities to sell well in the current market continues to improve. Additional factors boding well for a profitable Spring season include steady population growth, falling interest rates, relaxed lending standards and recent increases to median house prices, which is said to have resulted from both a lack of stock on the market and healthy levels of demand.

Results. It’s a Fletchers thing.

Categories: Auction Wrap