Plenty of auctions over the weekend that surpassed expectations and a few that didn’t. In Ascot Vale a single fronted fully renovated house sold for $1,520,000. Only two bidders vied for the property but ended up well above reserve to purchase under the hammer. The vendors would have to be happy with a result like that. The property was purchased less than 2 years ago for $820,000. It has undergone a very good renovation but to achieve a result of over $1.5M is phenomenal.
Another family home in Templestowe achieved a result over $1M after being announced on the market a little over $900k. The agent had been quoting the property $810k – $890k but with this very large family home filled to capacity due to the rain forcing the auction indoors, the auctioneer had his work cut out for him keeping up with the bidding.
The REIV clearance rate for the weekend was 61% with a further 72 properties still to be reported on. Whilst this is still in the realms of reasonable closing rates for vendors, the big weekends following the AFL Finals series, will be the big test. We should see auction turnover numbers rise significantly in October. If demand does not increase at a similar rate we may see clearance rates dive significantly. This would open the door to some potential bargains for buyers ready to purchase.
Investors usually re-enter the fray as well in the latter half of the year. Many investors who have received some healthy tax returns are looking for their next investment property. With vacancy rates getting lower in many suburbs, interest rates looking very steady and a greater supply of property for sale could lead investors into a very good purchasing opportunity.
If anyone is considering the purchase of a property this year please do not hesitate to call for a no obligation chat
Ian James
Director
JPP Buyer Advocates