Spring in season’s housing market step, as Melbourne auctions produce fruitful results

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Bidding is in bloom across Melbourne, as the auction market heats up in the first weeks of spring.

Victoria’s capital notched some massive results under the hammer yesterday, as buyers battled for the short supply of stock available.

The hot competition produced a 78 per cent early clearance rate from 556 results, CoreLogic data shows.

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Melbourne’s spring market is heating up.

A Camberwell cottage at 5 Warburton Rd sold for $1.125 million at auction.

If the figure stays above 70 per cent, it will be the fifth week in a row above the solid benchmark.

In Cheltenham, a three-bedroom house at 2B Coolac St sold for $1.006, more than $250,000 above reserve.

The buyer, who did not want to be named, entered the race with a knock out bid and secured the sale after serious competition against six other bidders.

The house sold for $1.006 million.

There were seven bidders for the property.

She said it was worth bumping the low-maintenance pad from its $700,000-$750,000 price guide into seven figure territory to win the keys.

“I wanted a single-storey home with a double garage and there is not a lot on the market that is ticking these boxes right now,” she said.

Buxton, Mentone, agent Christopher Rae said 232 groups had inspected the house before auction day and interested parties had included first-home buyers, downsizers and investors.

There were 232 groups through the home before auction day.

There’s a shortage of stock on the market at the moment.

Only 7000 homes are tipped to go under the hammer in Victoria during the spring selling season. That’s down from 11,036 last year and 13,844 in 2017, according to the REIV.

CoreLogic auction analyst Kevin Brogan said there was yet to be a surge in auction numbers, possibly affected by the AFL finals.

“Melburnians do seem to take public holidays and sporting events more seriously than any other capital cities,” Mr Brogan said.

“I think it’s definitely possible that (finals) would be a watershed.”

But buyer confidence was renewed immediately after the federal election, meaning demand was rampant, he added.

No changes to negative gearing, two interest rate cuts and looser lending regulations had encouraged buyers to break into the market this year.

National Property Buyers director Antony Bucello said low stock volumes coupled with returning buyers had “resulted in a recovery of the property market.”

15 Kilara Rd, Mentone sold at auction.

The two-bedroom property sold for $1.002 million.

“While we’re starting to see a little bit of an increase in stock, demand and confidence continues to increase as well,” Mr Bucello said.

“It’s back heading in the right direction.”

The buyer’s advocate watched on as four bidders vied for a two-bedroom Mentone house at 15 Kilara Rd, which eventually sold about $150,000 above reserve for $1.002 million.

A “super Saturday” is on the cards for next week, where more than 1000 properties are scheduled to test the auction market.

— with Jack Boronovskis

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