Auction fight back on as bidder numbers jump across Melbourne
Competition is returning to Melbourne’s property market with one in five auctions now attracting at least four bidders.
New figures show the city’s steadily rising clearance rate is being buoyed by on average two bidders battling it out for homes.
Last November, more than half of homes going under the hammer didn’t attract a single bidder.
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The research, from property sales tracking group Real Time Agent, shows by April this year, fewer than a quarter of auctions were uncontested.
Chief executive Daniel Portelli said there was further good news for sellers with the average number of bids at auction almost doubling from six to 10 over the same period.
“It does look like there’s a recovery underway,” Mr Portelli said.
“It feels like it’s a new cycle in regards to buyers.”
Last weekend, the city’s clearance rate recorded a seven-month high at 56.6 per cent, according to CoreLogic records — which includes data from Real Time Agent.
The firm’s Australian head of real estate, Geoff White, said it was an important turnaround from November when the figure fell to 41.3 per cent.
Mr White said sellers were no longer saying “get me an offer and I’ll take it” as auctions kicked back into gear and delivered solid sales.
While results this year had been helped along by “more realistic” price expectations and fewer auctions, the market had improved for sellers.
“The market might well be turning, albeit very slowly,” he said.
Ray White Victorian chief auctioneer Matthew Condon said there was often a “second wave” of bidding once a home was declared on the market — sometimes bringing new bidders into the contest.
And with rising crowd numbers, not even next week’s election was expected to stall the clearance rate.
“The data is not suggesting buyers will stand back for the election next week,” Mr Condon said.
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About 500 homes went under the hammer across Melbourne yesterday, with about 400 expected to be auctioned next weekend.