There were just over 600 auctions at the weekend and 4 out 5 sold. On top of this 734 properties sold by private sale according to the REIV. With over 1000 auctions scheduled for next weekend agents all over Melbourne are busy shutting down as many sales as possible.
Whilst selling agents enjoy the street theatre of an auction and the publicity amongst the neighbours (their next potential clients), they also know that with a finite pool of purchasers it can sometimes be better to shut down a sale rather than only have one or two bidders.
For purchasers the equation is similar. If you can secure a property at a fair and reasonable price before auction you should; especially this week. If you are lucky and most potential purchasers go to other auctions then you might pick up a bargain. But if you are looking at good property there may be a huge amount of potential bidders at your auction. There are always risks as to which way to go.
The next 6 weeks will be a frantic lesson for the uninitiated in real estate. With our interest rates going up due to the unbelievable performance of our economy, the only way for property prices to move seems up. I would assume we will see a massive jump in prices during February and March next year and this will be on everyone’s mind between now and Christmas. For those who can buy this year, they will be able to both relax from the hunt and also bask in the upward tilt of the market.
If you are in the market for a property to live in or as an investment, give us a call for a no obligation appointment.
Ian James