Melbourne Auction Results – October 21, 2013

By Peter Sarmas on 21 Oct 2013
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Stock Levels Rise in Melbourne as the Caulfield Cup Gets Underway

The start of the spring carnival this weekend brought about a win for Lloyd Williams, whose horse Fawkner, ridden by jockey Nick Hall, defeated favourites Dandino and Dear Demi.

The fascinators and fashionistas were certainly out in force on the field as it turned into another great spring day for Melbourne.

What Happened in the Global Economy?

This week’s big news hardly registered a mention again, but the US managed to avoid defaulting on their debt and raised the debt ceiling.

In turn, stock markets around the world did not collapse. Phew! 

As expected, the Republicans agreed to raise the debt ceiling at the eleventh hour, after playing hardball for weeks and causing 350,000 federal workers to take 16 days off without pay.

However, this latest agreement regarding the debt ceiling is temporary and will be revisited in January, so stay tuned.

On the home front, the positive news helped our share market hit a fresh 5 year high. The euphoria, coupled with the strong auction results below for Melbourne, really bodes well confidence-wise as we look to the next quarter.

Melbourne Auction Results

There were 910 auctions reported to the Real Estate Institute of Victoria (REIV). Of those, 523 sold at auction while 264 were passed in, resulting in a clearance rate of 71 per cent, compared to 74 per cent last weekend and 59 per cent for the same time last year.

This points to a healthy real estate market as it is the twelfth week in a row that a clearance rate above 70 per cent has been recorded.

We can now say with confidence that Melbourne property is in an upward cycle growth phase as buyers and sellers participate in a confident market.

Over the weekend the REIV reported a growth of nearly 9 per cent in median house prices for the September quarter, from $547,500 in the June quarter to $595,000. This exceeds the previous peak of $559,000, which was recorded in the December 2010 quarter.

Mr Raimondo, the CEO of the REIV, expressed concerns over these figures:

“Interest rates remain low and buyers are taking advantage of this with the chances of a further rate cut this year becoming less and less likely. But judging from the rather rapid increase in house prices, affordability pressures could start to act as a counter balance to demand in the next few months, particularly for first home buyers.”

Top 5 Houses

1. 16 Dawson Avenue, Brighton $3,605,000
2. 29 Canterbury Road, Middle Park $2,800,000
3. 54 Meredith Street, Elwood $2,800,000
4. 7 Widford Street, Hawthorn East $2,776,000
5. 14 Cooloongatta Road, Camberwell $2,500,000

Top 5 Bargain Houses

1. 11 Currajong Street, St Albans $240,000
2. 58 Hughes Crescent, Dandenong North $258,000
3. 5 Watson Street, Dandenong North $281,000
4. 4 Kiparra Close, St Albans $328,000
5. 32 Alexander Street, Hallam $335,000

Top 5 Apartments

1. 3/120 Anderson Street, South Yarra $2,150,000
2. 7/136 Yarrbat Avenue, Balwyn $1,385,000
3. 26 Singleton Road, Balwyn North $1,351,000
4. 19 Murray Drive, Burwood $1,225,000
5. 10 Hotham Street, East Melbourne $1,056,000

Top 5 Bargain Apartments

1. 2/101 Mccrae Street, Dandenong $240,000
2. 3 Long Street, Frankston $265,000
3. 22/46 Baker Street, Richmond $290,000
4. 3/76 Regent Avenue, Springvale $305,000
5. 6/67 Ballarat Road, Footscray $310,000

Source: REIV

For a basic snapshot of your suburb’s performance or a property report customised for your property, request a Free Market Report.

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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