Confidence is rebounding in Melbourne’s auction market following the Reserve Bank’s decision to keep interest rates on hold at 4.35 per cent earlier in the week, according to industry figures.
PropTrack data shows Victoria recorded a preliminary 63.9 per cent clearance rate from 560 early auction results available on Saturday.
Ray White Victoria and Tasmania chief auctioneer Jeremy Tyrrell said that for the past six weeks, his agency held more than 200 or more Victorian auctions every week.
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“Buyers hit the market this week with a little more confidence following the Reserve Bank’s decision on Tuesday to keep interest rates at bay,” Mr Tyrrell said.
However, Melbourne-based auctioneer Andy Reid said widespread speculation on whether rates would be hiked or reduced in the next few months was confusing some buyers and sellers with many unsure of what their next move should be.
“Many vendors are in limbo,” Mr Reid said.
But sought-after properties are still achieving outstanding results including a three-bedroom house at 15 Perth St, Blackburn South.https://www.realestate.com.au/property-house-vic-blackburn+south-144729552?sourcePage=rea:p4ep:property-details&sourceElement=avm-currently-advertised-view-listing
Mr Reid called Saturday’s auction for the property, listed with a $1.19m-$1.3m asking range.
It sold for $1.526m, a sum $226,000 above expectations.
Five bidders competed for the home listed by Ray White Box Hill’s Bonnie Shang and Angus Liu.
Ducted heating, split system airconditioning, a laundry with a workbench and a single carport feature within the home.
Also on Saturday, a two-bedroom unit at 1/4 Robert St, Chadstone, fetched $828,000, after being called on the market at $740,000.
Ray White Oakleigh’s Nick Strilakos said a first-home buyer couple who had been looking to purchase for about six months snapped up the home.
“It was affordable real estate in Chadstone,” he said.
“Presentation is really important at the moment – people are reluctant to do renovations at the moment because of the costs, people want to move in and put their feet up.”
Ceiling roses, a tessellated tile entry, lead lighting and Baltic pine floors are among the inclusions.
And Nelson Alexander principal Charlie Barham’s listing of a Federation-era house at 452 George St, Fitzroy, passed in with no bids.
But multiple buyers approached him after the hammer fell and the home sold for $1.67m.
Nelson Alexander sales director Nicholas West said in the past fortnight, buyers had generally become more assertive at auctions.
“I think certainly the view is when rates remain on hold for a while, people say ‘Now’s the time to make a decision,’” Mr West said.
A total of 1148 auctions are expected across the state next week.
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