Melbourne Auction Results – May 12, 2014
By Peter Sarmas on 12 May 2014
No Comments yet, your thoughts are very welcome
| Melbourne Auction Results 5th – 11th May2014 | |||||
|---|---|---|---|---|---|
|
70% 576 |
Sold at Auction: | 311 | Auction Volumes: | $290.45m | |
| Passed in: | 175 | Weekend Last Month: | 1397 | ||
| Sold Before: | 89 | Weekend Last Year: | 732 | ||
| Sold After: | 1 | Houses: | 70% | ||
| Unreported: | 45 | Units: | 70% | ||
Agents see Melbourne Property Market Softening
Over the weekend the REIV reported a clearance rate of 70 per cent from 576 auctions compared to 69 per cent last week and 70 per cent for the same time last year.
According to REIV, the final clearance rate hasn’t risen above 70 per cent since the week od the 23rd of March and therefore is demonstrating a diminishing trend. The forthcoming fortnight sees a huge two weeks of auctions with nearly 1,000 auctions expected each week. This will drive the total number of auctions to 3,700 which is a much higher figure than the long-term average for May.
The Market Takes a Turn
If you have been following our weekly posts you would have read about the concern surrounding this week’s budget release – due to be announced tomorrow. Furthermore, we must ask, what impact will the proposed spending cuts and continual rhetoric have on confidence. The Melbourne property market appears to have taken a turn and I see tomorrow’s budget further impacting this, at least in the short term.
“As we digest the data it becomes apparent that our economy is actually tracking better than last year’s budget projected.”
The affect is tangible, with consumer confidence falling in April after four consecutive rises. Last week Roy Morgan released some further concerning findings showing 88 per cent of consumers and 77 per cent of businesses are worried about tomorrow’s Federal Budget.
The Impact On Buyers and Sellers
Expect the near 1,000 auctions predicted each week for the coming fortnight to impact the clearance rates as supply steps up.
Melbourne Auction Results, May 12th
There may be a handful bargains foreseen over the next two weekends as motivated vendors accept lower than expected prices. But as we digest the data and it becomes apparent that our economy is actually tracking better than last year’s budget projections i expect the savvy property player will continue their plans to buy and sell. If we also consider the usual tightening stock levels going into winter, I would expect the Melbourne property market to hold steady as demand and supply diminishes over winter.
On the Ground
Most agents have noticed a pause in the market since Easter. According to APM Melbourne’s East performed best overall for units and houses with strength shown from the inner to the outer east of Melbourne.
“There may be a handful of bargains expected over the next two weekends as motivated vendors accept lower than estimated prices.”
The general feeling in the market is that the top end is certainly beginning to soften, however A-grade property priced between $1-1.5million and sub $1 million in select areas are still performing well as buyers continue to outstrip supply.
If you are a buyer and have been looking for an A-grade property in a very competitive market these next two weekends could potentially bring some opportunities for you. If you are a vendor booked for an auction and want to see a result on the day, then hang on and adjust to the market. Do not auction your property if you don’t have any genuine bidders on the day and ensure you don’t pass in a property at below market value.
