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Auction Snapshot | 14 & 15 December

December 16, 2019 Leave a comment

Rising house prices and late listings have resulted in a remarkably busier month for the auction market over December. With more owners feeling confident selling their homes later in the year, the REIV recorded a total of 993 auctions in Victoria, which is up from the same time last year.

Although typically viewed as a risky time of year to go to auction due to potential bidders being occupied with Christmas shopping and end of year functions, December has so far proven itself a worthy contender to buyers and sellers alike.

‘There has been over the past few months quite a bit of pent-up demand and that has pushed prices up in Melbourne quite sharply, and I think vendors are responding to that now,’ said ANZ Senior Economist, Felicity Emmett.

In a fantastic outcome for our team, an auction clearance rate of 91% was recorded across the Fletchers group over the weekend, marking a significant increase from the state-wide clearance rate of 75%. Similarly, the weekend also saw an incredible turn out of buyers, where there were as many as 6-7 bidders per auction.

One such auction was the premium 3 bedroom home at 9 Chester Street in Surrey Hills, which sold for $1,769,500 and had a turnout of 6 bidders on the day. Located in an enticing neighbourhood with tree-lined streets, this luxurious dream home featured a spacious lounge and dining, sun-filled family room and double secure carport.

Results. It’s a Fletchers thing.

Categories: Auction Wrap

Auction Snapshot | 7-8 December 2019

December 11, 2019 Leave a comment

With a staggering 1023 auctions reported across the state, Melbourne’s auction market continues to draw results similar to the ‘boom-time levels’ of 2013 and 2017, according to AMP Capital Chief Economist, Shane Oliver.

The first auction weekend for December saw a solid auction clearance rate of 78% in Victoria, indicating a remarkable improvement from this time last year, when clearance rates were recorded at 47%.

As the housing market continues to make strides on its way to recovery, Domain has reported a surge in home buyers rushing to renovate their homes in time for Christmas.

‘Almost two-thirds of home owners are making some type of improvements to their homes ahead of the holidays, with budgets ranging from $200 to $7000. More than 60 per cent of home owners said improvements at this time of year added financial pressure to the holiday period,’ said Tawar Razaghi from Domain.

Over the weekend, Fletchers recorded a clearance rate of 80% across the group, with 4 Tanami Court in Bulleen securing an astounding 8 bidders on the day. Making a bold statement of luxury and prestige, the 4 bedroom property, titled, ‘The Grange’, raised the benchmark for executive family entertaining, featuring an intuitive design with solar heated pool and spa, wood-fired pizza oven and palatial master bedroom.

Results. It’s a Fletchers thing.

 

Categories: Auction Wrap

Auction Snapshot | 30 November & 1 December

December 3, 2019 Leave a comment

Another weekend of strong auction results has consequently become Melbourne’s second-biggest auction weekend for 2019, proving the strong demand for properties is creating a sense of urgency amongst buyers.

As the decade draws to a close, the strong performance of the market is likely to continue into the New Year as homeowners take advantage of low interest rates and renewed levels of buyer demand.

With economists referring to the recent surge in house prices as a ‘mini boom’ for the industry, positive market conditions combined with the resurgence in investor activity point towards a much healthier landscape for the property market in 2020.

REIV President, Leah Calnan, said ‘it’s important to look at how the long term market is trending. The Victorian real estate sector has demonstrated long term growth and stability. In signs of an improving market, we are again seeing increasing demand from interstate and international purchasers.’

Results. It’s a Fletchers thing.

Categories: Auction Wrap

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