Melbourne’s auction market continues to experience a low clearance rate below the 60 percent level. It recorded a 59 percent clearance rate last Saturday, slightly higher than the 56 percent the previous week. This was despite the higher number of scheduled auctions at 852.
The number of reported auctions was at 606 and the number of properties sold was 377. Total sales recorded was down to $273,432,000 while the median price was pegged at $771,000.
The Domain Group noted that auction rate during the weekend last year was far better at 70.3 percent. This year alone, the weekly clearance rates across the city have fluctuated between 64 percent and 70 percent.
According to real estate experts, the gap between the A-grade properties (renovated homes near schools and infrastructure) and the B-grade and C-grade or inferior ones is widening each week. Buyers are said to be taking their time.
Meanwhile, buyers of high-end properties valued at more than a million dollars expect to receive discounts when purchasing compromised properties. A compromised property can be a heritage-listed house adjacent to apartments that could no longer be redeveloped, one located on the main road, a house with five bedrooms three of which are very small and those with south-facing or very small backyards.
The Real Estate Institute of Victoria reported some western suburbs have been performing well in the auction market in the past five years. These include Hoppers Crossing, Point Cook, Werribee and Sunbury.
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By Wendy Chamberlain
Copyright 2018 | All Rights Reserved
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With a passion for all things real estate spanning over 20 years, Wendy loves that her role as a Buyers Agent or Sellers Advocate gives her buying and selling clients an experienced voice they can trust when it comes to negotiating to buy or sell something as important as their home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership and to be trusted with that honour. Get in touch today via www.wendychamberlain.com.au for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.