Auction Report Melbourne - Saturday the 17 of July 2010

Monday, 19th July 2010 at 10:05am

The slight increase in the clearance rate was a nice piece of news for vendors thinking of selling soon, provided they maintain realistic expectations vendors should enjoy the upcoming spring market.

Even with a Federal election scheduled soon, in the last couple of weeks the general enquiry for buyer advocate service at our office has been very steady. It should bode well for the Spring market and stable clearance rates in the lead up.

Results
Each week we rotate a selection of 4 Auction sales across Melbourne suburbs. Typically we like to sample something from the north, east, west and south.

This is just a small snippet of what we are seeing happen in the market place as a buyer’s advocate of Melbourne real estate.

9/5 Selwyn Court, Toorak
Advertised $550,000 - $590,000
Sold $570,000
http://www.realestate.com.au/property-apartment-vic-toorak-106632296

11/82 Park Street, St Kilda West
Advertised $500,000 - $540,000
Sold $555,000
http://www.realestate.com.au/property-unit-vic-st+kilda+west-106632957

20 Sussex Street, Yarraville
Advertised $700,000 - $760,000
Sold $825,000
http://www.realestate.com.au/property-house-vic-yarraville-106626052

37 Olympic Avenue, Cheltenham
Advertised $830,000 - $900,000
Sold $900,000
http://www.realestate.com.au/property-townhouse-vic-cheltenham-106635991

Additional Comment:
In October 2009 we purchased on behalf of a client a 2 bedroom apartment in St Kilda West for $517,000, the market was flying along back then “but we got lucky” (did a hell of a lot of work) we were able to negotiate a private deal the week of the Auction. Fast forward 9 months and this weekend the immediate neighbouring and same size apartment sold for $555,000 in similar condition.

The market has slowed up since then and some Melbourne property owners have seen prices slightly decline or not improve much in the last 6 months, but this example illustrates the point that if you buy in well serviced suburbs, and don’t over pay at the point of purchase you stand an excellent chance of weathering short term market fluctuations and can enjoy long term capital gains ahead of the rest of the market.

Ask this question, how easy is it to save $38,000 in 9 months?

REIV Update
The performance of the residential auction market improved marginally this weekend with a clearance rate of 72 per cent compared to last weekends 67 per cent.

There were a total of 525 auction results reported of which 379 were sold, 146 were passed in with 91 of those being passed in on a vendors bid.

This weekends result will be welcomed by vendors with homes listed for auction in the next few weeks as it shows that demand is still healthy and buyers still very active.

This weekend last year featured substantially fewer auctions with 293 auctions held and a clearance rate of 85 per cent recorded.

Listings remain high with 1200 homes to be offered at auction in the next fortnight.


Enzo Raimondo
CEO, REIV

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