Melbourne pre-election auctions to get buyer vote of confidence
About 500 Melbourne homes go under the hammer this weekend ahead of next week’s federal election.
And despite uncertainties around how the market would respond to an opposition victory providing a mandate to tweak negative gearing and capital gains tax discounts, there’s expectations the pre-election auctions could win a vote of confidence from buyers.
CoreLogic records show Melbourne’s revised clearance rate landed at 56.6 per cent last week from about 670 auctions, the strongest figure since September 9 last year — excluding Easter when just 50 auctions returned a clearance rate above 60 per cent.
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Less choice this weekend is expected to help competition.
The firm’s Australian head of real estate Geoff White said he wasn’t expecting a swing against the clearance rate’s rising trend.
“We are probably well and truly through the awful clearance rates of late last year,” Mr White said.
The 500 auction figure this week is less than half the 1099 held on the same weekend last year, and an indication many homeowners have chosen to wait until after the election to sell.
Mr White said the reduced competition this weekend “might play into those vendors’ hands”.
“Homebuyers have not been so deterred by the political scene as investors were,” he said.
“Many of them have now been looking for some time and recognise that the decline in the market month by month is slowing and that’s an indication the market may be getting close to hitting bottom.”
First-home buyers and families are expected to compete with investors for a Coburg North townhouse with Merri Creek on its doorstep.
The three-bedroom home at 6/1-3 Ida St has a $720,000-$780,000 asking price and has had about 50 groups inspect it, a good figure in the current market, according to Nelson Alexander’s Steven Shaw.
“People have commented that it’s near Merri Creek and the tram terminus is at the and of the street,” Mr Shaw said.
Boosts to local infrastructure, including an Aldi supermarket being built nearby on Sydney Rd, was also adding to the appeal.
“And it’s a really big townhouse with a big open-plan area,” Mr Shaw said.
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It goes under the hammer at 12.30pm.