Auctions slow as buyers wait to negotiate after hammers fall
With Easter out of the way, auction numbers will bounce back this weekend.
Almost 500 homes are scheduled to go under the hammer across the metropolitan, compared to the slim pickings offered over the Easter long weekend.
But it remains to be seen if the increase in activity will spur buyers, who agents report have been reluctant to put their hands up at auction, often waiting instead for the hammer to fall before negotiating.
RELATED: Locals win prized Western Beach home as city, interstate buyers circle
Auction hack backed by science could demotivate other bidders
Melbourne home price falls starting to flatten despite another drop
“With the banks being tougher with lending I think a lot of people are being told not to bid at auction,” said Barry Plant Rosebud auctioneer Paul Cunnington.
Mr Cunnington sold 79 First Ave, Rosebud for $535,000 after passing it in at an auction that attracted a single bid of $520,000.
He said two more prospective buyers waiting to make an offer subject to finance emerged after proceedings, pushing up the sale price.
The sale was one of two auction successes for Mr Cunnington last weekend and part of the 59 per cent clearance rate recorded for Melbourne from the 48 auctions over the Easter week.
Despite this week’s auction boost, numbers will be well down on the 723 auctions held the week following Easter last year.
But not all parts of town are feeling the pinch equally.
Craigieburn and Reservoir have been tied as Melbourne’s auction hubs this year, according to CoreLogic.
Ray White Craigieburn principal Andrew Bellino said with clearance rates as high as 80 per cent some weeks, Craigieburn was ahead on spring last year.
And it looked likely to improve further in coming months.
“We had one at an in-room auction event last week that had seven bidders,” he said.
The number of people inspecting homes had also been edging up, with the average figure now above 40 in the area.
MORE: Fly in, fly out holiday home now departing as owner looks to take off
Modest facade hides ultimate outdoor pool cinema in Balwyn North
St Kilda Football Club’s Moorabbin base to benefit from council buy
Auction success post Easter would be a matter of matching affordability with family needs, Mr Bellino said.