Be realistic, vendors warned as selling season nears end
Melbourne turned in another solid set of results over the weekend with a few runaway successes, but some agents reported a shortage of bidders.
Melbourne's clearance rate of 72 per cent over the weekend was derived from 925 auctions reported to the Real Estate Institute of Victoria; Australian Property Monitors (owned by Fairfax Media) reported a slightly higher 73 per cent from 692 results and research house RP Data produced a lower 69.2 per cent clearance rate from 996 results.
RP Data spokesman Robert Larocca said this was only the second weekend in 14 weeks with the clearance rate falling below 70 per cent.
"It's too early to say the market's pulling back but it certainly shows it's not racing away from us," Mr Larocca said.
Sydney had its biggest weekend of auctions with 784 properties under the hammer. APM reported an 84 per cent clearance rate.
The REIV data shows 124 properties sold before auction and 262 passed in - 142 of them on a vendor bid. A further 141 results have yet to be reported to the REIV.
While not a stellar performance, the market is much healthier than last year when a 59 per cent clearance rate was achieved on a weekend with 1100 auctions.
The solid results follow the Reserve Bank's decision last week to keep the cash rate on hold for another month but there is some speculation that further cuts to the historic low rate of 2.5 per cent could occur next year in a bid to hold down the value of the dollar.
Some of the biggest deals of the weekend sold for close to their reserve prices. Kay & Burton's Gowan Stubbings had the two biggest auctions in Toorak.
Just off Heyington Place, 3 Rostill Court fetched $3.02 million, only slightly over its $3 million reserve, with competition from two bidders. Mr Stubbings said the buyer planned to live in the house, which is on 692 square metres.
An hour later, he auctioned 21A Albany Road, a single-level three-bedroom townhouse. While the result is undisclosed, it is understood to have sold for $4.55 million after a single bid.
Mr Stubbings would not confirm the price but he emphasised how much time and effort went into educating vendors about the value of their properties. "People have to be realistic about ... valuing their homes. The buyer pool is big but vendors have to be realistic," he said. "We've really only got five weeks to go ... there are buyers out there for pretty much everything so long as vendors meet the market."
Williams Batters director Philippe Batters said: "We find there are very, very good results but they aren't happening all the time. I keep reading that we're in a boom market; the trouble is, some vendors believe it.
"If a property is really good, people will fight for it. It doesn't mean it's really expensive, it just means it has special features," Mr Batters said.
As summer is beckoning, the number of beach houses on the market has started to increase but the buyers are slow to arrive.
Prentice Real Estate agent Don Campbell put two properties from a deceased estate to auction on Saturday but the house at 19 Oxford Street, Sorrento, was passed in on a vendor bid of $500,000 and an adjoining block of vacant land was passed in, also on a vendor bid, at $450,000.
"Even in the current market, $450,000-$500,000 for a block of land in Sorrento is cheap, very cheap," Mr Campbell said.
"Things down here are pretty slow. We're not reflecting what's going on uptown. Rye and Rosebud, the cheaper end of the market, are going well. But from Blairgowrie to Portsea, it's very slow.
Kay & Burton had better luck in Flinders, where 14 Bass Street, a four-bedroom beach house with sea views, sold for $1.645 million.
Frequently Asked Questions about this Article…
Property sellers are being advised to be realistic about their prices because the market is nearing its summer hiatus, and there is a shortage of bidders. Being realistic helps ensure that properties sell within the limited time frame.
Property sellers are being advised to be realistic about their prices because the market is not as strong as some might believe, and there is a shortage of bidders. With only five weeks left before the market closes for its summer hiatus, it's important for sellers to meet the market to ensure their properties sell.
Melbourne's auction clearance rate over the weekend was reported at 72% by the Real Estate Institute of Victoria, with slight variations from other sources like Australian Property Monitors and RP Data.
Melbourne's auction clearance rate over the weekend was reported at 72% by the Real Estate Institute of Victoria, slightly higher at 73% by Australian Property Monitors, and lower at 69.2% by RP Data.
Sydney had its biggest weekend of auctions with 784 properties under the hammer, achieving an impressive 84% clearance rate according to Australian Property Monitors.
Sydney had its biggest weekend of auctions with 784 properties under the hammer, achieving an 84% clearance rate according to Australian Property Monitors.
The Reserve Bank's decision to keep the cash rate on hold at 2.5% supports the property market by maintaining borrowing costs. However, there is speculation about potential future cuts to further influence the market.
The Reserve Bank's decision to keep the cash rate on hold at 2.5% has contributed to a stable property market. However, there is speculation that further cuts could occur next year to manage the value of the dollar, which could influence property prices.
Yes, notable sales include a property at 3 Rostill Court in Toorak, which sold for $3.02 million, slightly over its reserve price, and another at 21A Albany Road, which sold for $4.55 million.
Vendors face challenges such as a shortage of bidders and the need to be realistic about property valuations. Despite a healthy buyer pool, properties need to be priced appropriately to attract interest and achieve sales.
Vendors are advised to be realistic about valuing their homes. While there is a large pool of buyers, properties need to be priced appropriately to meet the market demand.
While the number of beach houses on the market has increased as summer approaches, buyers have been slow to arrive. Some areas like Rye and Rosebud are performing well, but others from Blairgowrie to Portsea are experiencing slower sales.
As summer approaches, the number of beach houses on the market is increasing, but buyer interest is slow. Some areas like Rye and Rosebud are performing well, while others from Blairgowrie to Portsea are experiencing slower activity.
Properties that are highly sought after often have special features that attract buyers. Even if a property isn't expensive, unique characteristics can lead to competitive bidding.
Vendors are facing challenges such as a shortage of bidders and the need to adjust their price expectations to align with market conditions. This is crucial as the selling season is nearing its end.
Some of the biggest property deals over the weekend sold close to their reserve prices. For example, a property at 3 Rostill Court sold for $3.02 million, slightly over its $3 million reserve, indicating that realistic pricing can lead to successful sales.
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