Melbourne Auction Results – July 7, 2014
By Peter Sarmas on 7 Jul 2014
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| Melbourne Auction Results 1st-6th July 2014 | |||||
|---|---|---|---|---|---|
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74% 360 |
Sold at Auction: | 215 | Auction Volumes: | $180.1m | |
| Passed in: | 95 | Weekend Last Month: | 1243 | ||
| Sold Before: | 50 | Weekend Last Year: | 289 | ||
| Sold After: | 0 | Houses: | 78% | ||
| Unreported: | 127 | Units: | 69% |
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Clearance Rates Remain Firm But Debt Levels Rise
The property market marches on. According to the REIV a clearance rate of 74 per cent was recorded this weekend compared to 73 per cent last week and 68 per cent on this same weekend last year.
Accordingly, there were 360 auctions reported to the REIV this weekend, with 265 selling and 95 being passed in, 52 of those on a vendor bid.
In 2014, about $9.8 billion of homes have been sold at auction. This figure is 41 per cent higher than this time last year and it also surpasses the previous peak of $8.9 billion transacted over the same period in 2010.
Rates Remain Unchanged
Last Tuesday the Reserve Bank (RBA) met for its monthly decision on interest rates. Consequently the cash rate was left unchanged at 2.5 per cent.
The RBA expected a period of increased stability and lower interest rates globally. In Australia, recent data shows strong growth at the beginning of the year as a result of increases in mining exports. There has also been moderate growth in consumer demand and a strong expansion in housing construction is now under way. At the same time, resources sector investment spending is starting to decline significantly.
“The preferential treatment by institutions for mortgage lending over businesses is likely due to the ongoing strong performance of mortgages.”
The RBA noted the significant growth of dwelling prices over the past year. Nevertheless, recently there have been some signs of moderation in the pace of price increases and savers continue to look for higher returns in response to lower rates.
Photo courtesy of: Flickr Creative Commons/Matthew Paul Argall
Latest housing credit data for May shows that outstanding credit grew by 0.4 per cent over the month and is 4.7 per cent higher for the year. This annual increase comprised of 6.2 per cent rise in housing credit and a 2.7 per cent increase in business credit.
RP Data senior research analyst Cameron Kusher said that there was a clear preference for mortgage lending, “Clearly housing credit continues to be the main driver of overall expansion in credit.”
“The preferential treatment by institutions for mortgage lending over businesses is likely due to the ongoing strong performance of mortgages.”
However the latest March household debt to disposable income data released by the RBA shows that the ratio of total debt is 149.9 per cent, surpassing its previous highest level in September 2010 where housing debt was recorded at 135.8 per cent.
Over The weekend
Last week I have been busy working for 3 clients. One was looking to buy inner city in Richmond where prices for a 2 bedroom in Cremorne are bringing $750,000 for a property that’s fairly original. Though, in better parts like Kimber Street you’d be looking at mid to high $800,000 for a 3 bedroom 12 square (approximately) property.
In regard to my other clients, one is an investor who I am helping find a property in the North Eastern Suburbs, while I have also been interviewing agents for my third client who is looking to sell in the Docklands. Overall it was a very diverse but interesting week.
