Bidding wars are breaking out between buyers trying to secure properties in what’s being called an “eerily quiet” auction market.
There were only 497 auctions in Melbourne last week, which was down from 723 held the week after Easter last year, according to CoreLogic.
The 55.7 per cent preliminary clearance rate was also a drop from the 68.2 per cent final figure in the same week last year.
Wakelin Property Advisory director Jarrod McCabe said the market had entered its hibernation period early due to ANZAC day, school holidays and the federal election all falling around the same time.
But some top results under the hammer proved there were plenty of buyers still in the market.
A two-bedroom West Melbourne apartment sold for $924,000 as three downsizers vied for the keys.
Hocking Stuart agent Scott McElroy said 10/55 Batman St sold $74,000 above reserve because it was a rare find.
“It’s hard to find the right property at the moment, so anything oversized, slightly unique and in a boutique building like this one is still achieving good solid prices,” Mr McElroy said.
“This sale set a record for the building, which proves demand for standout listings is still there.”
Vendors with a quality property should consider selling now while stock volume was low, he added.
A vendor at 32 Bedford Rd, Ringwood did well to turn down an early offer and test the auction market.
Noel Jones Mitcham agent Andrew Moore said four bidders pushed the price up to $900,500 on Saturday, April 27.
It was a result well above the pre-auction offer of $850,000.
“The owner is going into a retirement village and said she was hoping for at least $900,000 to cover the bills, and we knew we had interest at that level,” Mr Moore said.
“We had about six groups that were very interested and we decided to take it to auction to get the best result.”
Another family home at 38 Caithness Cres, Glen Waverley sold $101,000 above reserve after four bidders raised their hand.
The three-bedroom house with views to the Dandenong Ranges sold for $1.151 million under the hammer.
CoreLogic shows there are 588 auctions scheduled for Melbourne next Saturday, May 4, which is down from the 956 that went under the hammer during the first Saturday of May in 2018.
Mr McCabe said while stock levels had dropped to “eerily quiet” levels, there could be a bounce back during the second half of the year.
“Although winter has come early for property, don’t be surprised if the resulting pent-up demand sees a property stock boost arrive early in August,” he said.
This news article was first published in www.realestate.com.au. Here is the link to the original article.