Melbourne Auction Results – April 13th
We expect April to be a relatively quiet month with a number of agents reporting strong listing numbers for the month of May.
A clearance rate of 78 per cent was recorded this weekend compared to 70 per cent this weekend last year. There were 540 auctions reported to the REIV last week, with 419 selling and 121 being passed in, 60 of those on a vendor bid.
The inner and middle suburbs have seen the highest number of properties sold before auction this year. The top suburbs include Williamstown, where more than a third of properties were sold before auction, followed by Glen Waverley (31 per cent) and St Kilda (30 per cent).
Clearance Rate: 78%
Reported Auctions: 540
Sold at Auction: 324
Passed in: 121
Sold Before: 95
Sold After: 0
Auction Volumes: $319.31m
Last Weekend: 44
Last Year: 1360
Houses: 80%
Units: 73%
Record prices recorded for properties are seeing people bring forward their plans to sell
We have witnessed tree and sea changers take the plunge and buy a property then negotiate on a long term settlement on their property, knowing that the strong property market will leave them with some money left over after the changeover. Investors are cashing in their old properties which require too much maintenance and updating and instead, choosing to pocket their profits and pay down some debt or upgrade to a bigger home in a leafier location.
Then there’s the Chinese factor which everyone seems to be talking about. I find it most interesting when Australian resident Chinese are complaining about newly immigrating Chinese apparently “buying up all the real estate” and “making it expensive for everyone else”. How much of an impact is this new “hot money” having on the Melbourne and Sydney markets at the moment, no one can actually quantify for sure.
The Reserve Bank Surprises Everyone by Holding Rates
In case you missed it last week the Reserve Bank of Australia convened to discuss whether to lift official interest rates or not. The long and the short of it was that rates were left on hold, to the surprise of most economists and money markets who predicted further cuts. The reaction was a spike in the Australian dollar and a fall in the Aussie share market.
It seems the RBA has a serious dilemma on its hands which goes beyond the boundaries of the Australian economy.
The world is in the grips of a major currency war between the world’s top superpowers – the USA, Japan and The Eurozone – Germany and France. With record low interest rates, some at near zero, these countries or “zones” are trying to stimulate their economy and by devaluing their currency in the hope of increased exports and spending. Any upward move in rates by a country like the US could spell disaster for its economy which is just beginning to recover from 2008’s GFC.
In a way, the RBA was hoping the US would have taken action and lifted rates by now, but this hasn’t happened. The major concern for Governor Glenn Stevens and his crew is fanning the property flames further by dropping rates, in particular in Sydney where price growth seems unstoppable at the moment.
Their rhetoric from the meeting was a “further easing bias” which means there could be one more rate cut in May, but most believe we are near the bottom of the interest rate cycle and rates could be on their way up. Don’t forget most economists thought we would already have had another rate cut, so at the moment its anybody’s guess.
Latest financial data shows investor lending slumped in February with housing finance falling 1 per cent to $30.4 billion for the month of February, according to the ABS.
View of Melbourne from Williamstown Photo Source: tripadvisor.com.au
On The Street
Well news on the street is that it’s been tough to grab a property at the “right” price with many auctions we witnessed selling under the hammer or shortly afterwards in front of solid crowds over the weekend.
Property prices just seem to be rising in many areas, even B and C grade properties are selling just because supply is so low in many areas.
On the vendor front, I have 3 properties about to hit the market over the next few weeks. All have had extensive work and will have staging done to make them look their best, come sale time. Interestingly, nearly all of them have seen price rises in their respective areas as stock levels have fallen dramatically since the end of March.
Unless the Budget due to be released in May throws a curve ball and causes everyone to panic and rethink their financial situation, I can’t see the current market slowing, at least in Melbourne’s auction dominant areas anyway. Cheers for now!
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Top 5 Houses
- 162 Page Street, Middle Park $3,375,000
- 3 Edwin Road, Templestowe $3,100,000
- 1 Nerolie Court, Wantirna South $2,210,000
- 259 Bridport , Albert Park $2,022,000
- 1/96 Campbell Road, Hawthorn East $1,915,000
Top 5 Bargain Houses
- 19 Mortlake Avenue, Dallas $283,500
- 25 Wynnette Court, Epping $325,000
- 29 Nightingale Drive, Werribee $330,000
- 1 Pindari Avenue, Epping $330,000
- 16 Runcorn Crescent, Deer Park $351,000
Top 5 Apartments
- 23/156 Rose Street, Fitzroy $1,400,000
- 80A Marriage Road, Brighton East $1,175,000
- 1/8 Loddon Street, Box Hill North $1,170,000
- 33 Lilly Street, Clifton Hill $1,115,000
- 2/65 Park Lane, Mount Waverley $1,000,000
Top 5 Bargain Apartments
- 18/54 Balston Street, Balaclava $270,000
- 3/54 Cunningham Street, Northcote $290,000
- 21/81 Edinburgh Street, Richmond $300,500
- 6/5 Redan Street, St Kilda $326,000
- 32/90 Edgars Road, Thomastown $340,000
Source: REIV
