Melbourne Auctions Rebound Strongly After Easter

26.04.16 | Marc Barlow | News

The Melbourne property auction market rebounded strongly over the weekend after the traditional lull that came throughout the Easter period.

Data recorded shows that there were 761 auctions held with a 73% clearance rate yielded across the city.

Agents also reported strong showings at the open houses that were held and that most auctions that were held saw multiple bidders contesting for the property.

One hot spot of note was a home located in Paul Street, Cheltenham, which was fought over by seven bidders in front of a three figure crowd. The home was eventually won by a keen bidder for the handsome price of $1,280,000.

Available Homes For Sale

The month of April has and will continue to see lower stock amounts of homes for sale due to both the Easter long weekend and the upcoming Anzac Day commemorations.

Two long weekends in a month means less auctions and lower clearance rates though it’s not all doom and gloom for buyers and sellers as May will almost certainly see an upsurge in action.

During the month of May 2015 most weekends saw 1,000 plus auctions and a similar result is expected again this year.

Of the available homes that are for sale at the moment three bedroom family friendly homes remain extremely popular, and as they are in short demand their median price continues to climb in value.

Coupled with the ongoing historic low interest rates that are currently present in Australia, both positive conditions for home purchasing and price growth continue to occur in the Melbourne property market.

What Are The Investors And Investments Up To?

While first time and upgrading homebuyers continue to drive the housing market in Melbourne, investors are also present and are willing to make a purchase should a property with sound fundamentals become available.

Established apartments and units in the inner city are popular due to their location and ease of leasing, and it has become quite noticeable that there is a disparity in stock levels between apartments and homes which is producing something of a two-speed market in these two asset classes.

With house stocks low and competition for them high, the price growth in this area of the market continues to be very strong, whereas as a rapid increase in the amount of new apartments becoming available for sale means that unit prices are not gaining in value as rapidly.