Home auctions boosted as falling mortgage costs encourage buyers
Changes to the state government's first home buyer's grant are expected to boost the low end of the market in the next six weeks.
While conditions were buoyant in Glenroy in the north where three of four properties sold before the scheduled auction date, Greensborough to the east posted a clearance rate of just two sales from seven auctions; in Epping only two out of five sold at auction; and in Bundoora, just one out of four. The weekend's 72 per cent auction clearance rate was recorded from the results of 653 auctions, slightly higher than the 69 per cent rate recorded over the past few weekends and better than the 61 per cent posted last year. The 58 outstanding results could bring the final rate down.
The higher volume of sales this year - 8434 auctions compared with 7980 last year - should deliver a much needed stamp duty bump to the state government's coffers. The Real Estate Institute of Victoria says the value of homes sold to date is just over $4 billion, about 38 per cent higher than the $2.9 billion sold last year at this time.
Frequently Asked Questions about this Article…
Falling interest rates are luring buyers back into the market, helping auction activity overall. However, the article notes that first home buyers in particular appear to be holding back at auctions despite the improved conditions.
At present first home buyers seem to be holding back from auctions. The article says upcoming changes to the state government's first home buyer grant are expected to boost the low end of the market in the next six weeks, which could increase first-home-buyer participation.
The weekend clearance rate was 72% from 653 reported auctions, slightly higher than the recent 69% weekends and better than 61% this time last year. Investors should note there were 58 outstanding results that could lower the final rate, so the initial figure may change.
Performance varied by suburb: Glenroy was buoyant with three of four properties selling before their scheduled auctions; Greensborough recorded two sales from seven auctions; Epping saw two of five sold at auction; and Bundoora had one of four sold at auction.
Yes — there have been 8,434 auctions so far this year versus 7,980 at the same point last year. The higher volume should deliver a helpful boost to state government stamp duty revenue.
The Real Estate Institute of Victoria reports the value of homes sold to date is just over $4 billion, about 38% higher than the $2.9 billion sold at the same time last year.
Yes. The article highlights 58 outstanding auction results that could bring the current 72% weekend clearance rate down once they are finalised, so finalised figures may differ from initial reports.
Investors should monitor interest rate movement and auction clearance rates, auction volumes, and any changes to the state government's first home buyer grant — the article notes these factors are influencing buyer behaviour and may affect the low end of the market in the coming weeks.
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