Melbourne market ‘starting to rebound’ as winter chill hits
A sudden drop in auction numbers is set for this weekend, as the first day of winter brings a chill to the market.
Properties going under the hammer will drop to just 659 this Saturday, well below the 971 that went to market last week, according to CoreLogic.
It’s also a harsh drop from the first auction week of June last year, when 1079 properties went under the hammer.
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But CoreLogic Australian head of real estate Geoff White said despite the winter blues, a consistent clearance rate in recent weeks was an encouraging sign for the market.
“Many thought the market would be flat for the whole year, but we’re starting to see that’s not the case because it’s starting to rebound,” Mr White said.
“I don’t think we’re going to see property values go backwards too much more because buyer numbers are edging up and activity is increasing.”
He said the 60.7 per cent final clearance rate from the quiet federal election weekend only dipped slightly to 59.6 per cent last weekend when volumes doubled.
He expected this week’s result to also hover at about 60 per cent.
Stock has frozen up in Brighton, where only four family-sized houses are going under the hammer on Saturday, June 1.
One of those is the picture-perfect property at 62 Asling St. Nick Johnstone agent Simone Chin said it had drawn a lot of attention, partly due to a lack of stock.
“Families from Malvern, Armadale, Middle Park and Albert Park are all interested in this property and they’re looking to the area because you can get good value right now,” Ms Chin said.
“I expect we’ll get a great result at auction.”
The grand Victorian will go under the hammer with a $2.4-$2.6 million price guide.
There are still plenty of larger homes going to auction in Melbourne’s north.
A three-bedroom Hadfield townhouse at 16C Tristan Court could prove a popular choice for buyers.
The stylish single-level house offers open-plan living and a secure backyard for families, with an affordable $470,000-$517,000 price guide.
Ray White South Morang director Nick Petrovski said there were still plenty of competitive auctions in the area.
“Recently the clearance rate has been steady and if something passes in it doesn’t hang around the market for too long,” Mr Petrovski said.
He said many vendors had been open to accepting early offers at the right price, which could have added to the drop in auction stock.
Richmond will be the busiest suburb for auctions across Australia this week, with 14 properties scheduled to go to auction. Bentleigh and Doncaster closely follow, with 13 and 12 properties being auctioned respectively.
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