Melbourne Auction Results – September 30, 2013

By Peter Sarmas on 30 Sep 2013
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Last week, the RBA released its financial stability review, which assessed the state of the Australian financial system.

This review looked at issues like Australia’s banking practice and Household and Business Balance Sheets.

What Did the RBA Report Say?

According to Chief Economist Bill Evans, bank lending practices have remained generally unchanged despite some ill-informed hysteria in the media.

There was also no evidence that the RBA would move to make banks change their current lending practices, which are considered too lenient by many experts and commentators.

In their release, the RBA pointed out that many homebuyers are treating low interest rates as a chance to pay off more of their mortgage sooner.

“For example,” the statement says, “anecdotal evidence suggests that around half of households have not reduced their regular mortgage payments as interest rates have fallen.”

Additional mortgage repayments held in mortgage offset and redraw facilities are at near all-time highs.

Homebuyers have built a 21 month mortgage buffer, which means that many homebuyers will be able to cope better with expected interest rate rises and temporary financial setbacks.

Other Economic Updates to be Released this Week

This week we expect the release of credit data, retail sales and housing approval figures, as well as the all-important US payroll numbers. It will be interesting to see what these numbers mean in terms of Australia’s economic health.

The Reserve Bank will also meet this week to discuss the state of the economy and movement of the cash rate.

The general consensus is that interest rates will remain unchanged for October; however, markets are pricing in a 50 per cent chance that there will be further cuts by the end of this year as the Australian dollar remains stubbornly high and our economy remains sluggish.

Interestingly, newly elected Prime Minister Abbot and Treasurer Hockey both welcomed the large price gains in house prices.

Mr Abbot stated that although higher prices are making it difficult to enter the market, “it also means that everyone who is in the market has a more valuable asset”.

The Game That Stopped Melbourne’s Auctions

The game that stopped a nation (or the game that stopped Victoria, anyway) also stopped auction activity over the weekend. No vendor or agent in their right mind would have auctioned a property on Saturday afternoon.

Fans gathered around a barbeque with friends and a beer to watch and celebrate that “One Day in September”. Many fans saw seasoned finals contenders the Hawks win the coveted AFL Grand Final Premiership Cup in a hard fought battle with Fremantle. Experience seemed to be the difference in the end.

Melbourne Auction Results

On the day, 54 auctions were reported to the Real Estate Institute of Victoria (REIV). Thirty-nine properties sold, while 15 were passed in, 3 on a vendor bid.

As there were less than 100 properties reported, the REIV deemed these numbers too low to report an accurate clearance rate and as such none was noted.

Next weekend Melbourne’s auction market is back in full swing. The REIV predicts 860 properties will be auctioned.

Top 5 Houses

1. 34 Bolinda Road, Balwyn North $1,275,000
2. 56 Wilson Road, Glen Waverley $1,228,880
3. 25 Atheldene Drive, Glen Waverley $1,105,000
4. 39 Lloyd Street, Strathmore $1,000,000
5. 7 Darnley Drive, Templestowe $885,000

Top 5 Bargain Houses

1. 48 Melbourne Avenue, Glenroy $425,000
2. 33 Burke Road, Ferntree Gully $445,000
3. 44 Alexander Avenue, Thomastown $465,000
4. 33 Bergen Street, Keysborough $470,000
5. 8 Fulwood Place, Mulgrave $615,000

Top 5 Apartments

1. 1/14 Longview Avenue, Bentleigh East $885,000
2. 3/7 Takapuna Street, Caulfield South $755,000
3. 1/25 Kooyong Road, Armadale $680,000
4. 7/26 Tennyson Street, Elwood $561,000
5. 10/183 Auburn Road, Hawthorn $462,000

Top 5 Bargain Apartments

1. 1/205 Mason Street, Newport $264,000
2. 7/181 Bay Street, Port Melbourne $400,000
3. 9/32 Liddiard Street, Hawthorn $435,000
4. 9/11 Fulton Street, St Kilda East $456,000
5. 10/183 Auburn Road, Hawthorn $462,000


Source: REIV

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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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