Melbourne Auction Results – August 17, 2013

By Peter Sarmas on 19 Aug 2013
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Melbourne Weekend Auction Results

The Melbourne market maintained its strength this week, almost mirroring last week’s results. Unreported auctions were substantially higher, at 93 compared to 50, but this was the only main difference.

According to the REIV, this is the fourth week that Melbourne auction clearance rates were close to or above the 70 per cent mark. The outer east recorded the highest rate and volume of houses sold at auction.

We can safely say the Melbourne market is now in a stable position. What’s more, it appears to be entering a growth price phase, although this is not apparent in all Melbourne suburbs for all properties.

Property Market News

Quality properties are attracting multiple bidders and substantial prices according to our buyer advocates Cate Bakos and Catherine Cashmore, who have been busily visiting auctions on behalf of clients over the past few weeks.    

Property buyers appear to be selective. They are aggressively chasing quality stock in quality areas and streets.  Stock levels in a number of inner and middle ring suburbs have plummeted in recent weeks, while the outer suburbs and the CBD still struggle with an oversupply, so there is no “one size fits all” description of the Melbourne property market at the moment.

Global Economic News

Economic data released last Wednesday on the Eurozone economy points to a recovery for the first time in two years, as Germany and France lead the way out of recession with growth in their GDP.

The continued re-emergence in the US economy, and China’s self-imposed slowdown both point to a positive outlook for Australia, which is in an ideal position to continue the mining boom on the back of increased iron ore and commodity prices.

Looking Forward

Looking over the next two weeks to the election and the AFL Finals, we see more of the same as stock levels and quality properties decline. Suburbs with critically low property levels will start seeing more “B-Grade” property sales, and prices should continue to rise.

The big test for the Melbourne real estate market will come when supply increases after September. How much of that stock will be taken up by buyer demand? Stay tuned for next week’s wrap.

About the Author

Peter Sarmas is a Certified Property Investment Advisor (PIAA) and Vendor/Buyer Advocate. Before becoming the founder of Street News, Peter completed a Degree in Applied Science (Chemistry) and a Graduate Diploma in Property Valuations (Hons). Peter believes property investing is a major and potentially risky undertaking. In his view, everyone should have an independent person acting on their behalf when seeking property investment advice.

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