Melbourne Auction Results – September 23, 2013
By Peter Sarmas on 23 Sep 2013
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The US Federal Reserve threw a curveball this week when they continued their quantitative easing.
Will This Weekend’s Auction Results Be Affected?
The Federal Reserve made the bold decision to continue printing money to stimulate the US economy.
This unexpected move saw share markets around the world rally; including our market, which hit a five year high and sent the Aussie dollar surging to 0.95 cents from its low of 0.89 against the US currency.
But what has this got to do with property and Melbourne’s weekend auction results?
Nothing and everything.
What Does This Have To Do With Property?
Rumblings from economic boffins predicting that we are heading into a housing bubble sounded louder during the week.
Calls for banks to tighten their lending criteria increased concerns that a rising Aussie dollar will see the Reserve Bank of Australia reach for the interest rate lever and reduce the cash rate from its 60 year low.
This could be seen as a positive move for the average investor or first home buyer, but the real fear is that any further reduction in rates could spark a price boom, creating an unsustainable bubble and eventual crash.
Last week, SQM’s Louis Christopher predicted that Sydney could see sharp price rises in the New Year – prices a staggering 15-20 per cent higher. Meanwhile, Melbourne is on track for a 7 per cent median price rise this year.
Melbourne Auction Results
Over this weekend, 837 properties were put to market and a reported 78 per cent sold; a solid performance on last week’s already strong result.
With the commencement of the school holidays and the AFL Grand Final to be played out this weekend, real estate agents will be shutting shop early on Saturday in preparation for the big bounce.
The Real Estate Institute of Victoria (REIV) expects auction numbers to crash to around 60 auctions.
Advocate Sees Strength in Auction Results
On the street, buyer advocate Cate Bakos was out in force helping another buyer, this time in Bulleen.
Real estate agents and buyer advocates continue to see strength in the market, although it appears to be property specific.
“We are in the midst of a seller’s market and things don’t feel like they are slowing down,” Ms Bakos said. “As a buyer’s agent, I am taking every opportunity to buy prior to auction because in the tightly held inner and middle ring suburbs, most vendor reserves are being surpassed on auction day.”
But the latest auction clearance rate hides the disparity between suburbs and varying available stock.
The Disparity Between Suburbs and Varying Available Stock
A closer look at two different Melbourne suburbs really shows the stark difference in supply, property prices and the multi-speed property market we are experiencing.
If you take a quick look on realestate.com.au, outer western suburb Truganina has 834 properties on the market, while inner city suburb Elsternwick has a mere 8.
It’s this difference that buyers and sellers need to take into account when reading real estate market commentary. They must research the unique micro market conditions in their suburb of choice, as one size does not fit all at the moment.
Furthermore, the assumption that every property purchase in this current market will result in long-term capital growth couldn’t be further from the truth. Buyer beware!
Top 5 Houses
1. 89 Claremont Avenue, Malvern $3,220,000
2. 107 Finch Street, Malvern East $2,700,000
3. 15 Currajong Avenue, Camberwell $2,640,000
4. 71 Tivoli Road, South Yarra $2,491,000
5. 24 Lansdown Street, Balwyn North $2,388,000
Top 5 Bargain Houses
1. 22 Wiltonvale Avenue, Hoppers Crossing $271,000
2. 4 Nareen Avenue, Coolaroo $290,500
3. 27 Koonalda Road, Gladstone Park $300,000
4. 12 Wild Cherry Avenue, Pakenham $306,000
5. 464 Eastbourne Road, Rosebud West $315,000
Top 5 Apartments
1. 62 Ashworth Street, Albert Park $1,775,000
2. 42 Raglan Street, South Melbourne $1,305,000
3. 13A James Avenue, Kew $1,300,000
4. 173 Dow Street, Port Melbourne $1,165,000
5. 7/703 Orrong Road, Toorak $1,100,000
Top 5 Bargain Apartments
1. 7/36 Albion Road, Box Hill $266,000
2. 3/245 Hotham Street, Ripponlea $267,500
3. 6/31 Bradley Street, Newport $290,000
4. 809/480 Collins Street, Melbourne $292,000
5. 11/1383 Nepean Highway, Cheltenham $300,000
Source: REIV
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