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Category Archives For: The Wrap – Melbourne Auctions

2011’s first Auctions

This weekend gone, saw the first Auctions for 2011 and lets hope they are not setting the standard for the remainder of the year. With a disappointing success rate of just 55%.

The Auctions were spread far and wide with many taking place along the coast, in an attempt to capture the holiday makers prior to the mass exodus with schools heading back this week.

There was very little action in the Inner City Market, showing us the the Auction season has not truly started. Most campaigns will commence this weekend, to coincide with schools returning and people returning to work.

With only 126 Auctions taking place, it is difficult to make bold predictions about where the market is heading.  We will need to wait until the end of February when we will see a rise in the number of properties that are put on the market.

With many properties still on the market from Christmas this may be a good indicator that stock levels will be low, potentially resulting in higher prices.

Auction wrap 4th & 5th Dec 2010

This weekend we saw a minor fall in clearance rates, this week down to 60% from last week of 61%. Once again a huge number of Auctions, 1005 with 608 selling leaving 397 passed in, of which 250 were on a Vendor Bid.

As we indicated last week, the clearance rates seem to be steadily around the 60% mark, which is a far cry of the high 70% to 80% that were achieved a few months ago. Clearly stock levels and a lack of confidence are the main contributors to this.

We did note from the weekend that properties that were outside the norm struggled for success on Auction day,  several properties that had been highly renovated with unconventional floor plans did not receive glowing praise from bidders and as a result no bids.

We will wait with interest as the final two Auction weekends rapidly approach as to how the market will end the year.

Auction Wrap – November 27th & 28th 2010

The clearance rate has improved slightly this weekend in comparison to last weekend, sitting at 61% – up from 57%. There were a huge number of auctions this weekend – 1025 took place, of which 627 sold and 398 passed in.

Although the clearance rate has increased somewhat, results appear to continue to drop off, especially in apartment sales. The increase in stock levels has reduced competitive bidding at homes for auction, resulting in plateau pricing.

It is unlikely that the clearance rate or results will improve for the rest of 2010, with auction numbers still high. Although we have seen some better quality stock come onto the market in the past few weeks.

Again, any unique property with few negatives is still selling well – 27 Rupert Street, Brunswick sold on the weekend for $1,265,000 against a quote of $1,000,000 – $1,100,000 and property suited to many different people also performed well – 22 Birkenhead Street, Fitzroy North, which sold for $786,000.

Auction Wrap – November 20th & 21st 2010

This weekend marked the first weekend in the busiest four week period ever in the Melbourne auction market – there are set to be over 1000 auctions taking place each weekend.

The clearance rate remained consistent this weekend at 59% – just dropping slightly from last weekends 61%. With the increase in stock over the next few weeks, it seems the clearance rate is likely to remain at this level or possibly even drop further.

Some really mixed results this weekend, with some properties performing extremely well, like 15 Carroll Street, North Melbourne quoted $600,000 – $660,000 sold very well for $805,000. And some properties really not attracting the attention we would have seen some months ago – 37 Munro Street, Brunswick (pictured) appeared good value for both buyer and seller, obtaining a price of $810,000 after being passed in at $760,000.

Results and bidder numbers have real started to drop off, especially in outer suburbs. Good property in a solid position, is still performing well, however any negative will see the sale price pulled back somewhat or result in the property not selling at all.

It will be interesting to see results and clearances over the next few weeks.

Auction Wrap – November 13th & 14th 2010

Clearances have remained steady this weekend, increasing just two percent to 61% – from last weekends 59%. There were 836 auctions reported on the weekend, of which 508 sold and 328 passed in.

Clearances are likely to remain at this level for the rest of the year, with stock levels continuing to rise and buyings being far more cautious and even dropping off due to the decision of the banks to increase interest rates above the rise of the RBA.

Results also appeared to drop off somewhat this week, with a number of good value buys out there. In particular 365 Canning Street, Carlton North which sold for $700,000. Property with very few negatives and something special or unique still appears to be performing well – 7 Lawson Street, Elwood quoted $1,500,000 – $1,600,000 sold on Saturday for $1,825,00 under tough competition from two bidders.

Over 1000 auctions are expected to take place on each of the next three weekends.

Auction Wrap – November 6th & 7th 2010

The clearance has dropped this weekend, not just slightly, but more fallen from a cliff. There were 633 auctions reported this weekend of which 383 sold and 250 passed in, resulting in a clearance rate of 61% – down 7% from last weekend.

Results varied with some stock just not attracting enough bidders, while others, some unexpectedly performing well. A few months ago, the renovators delight seemed to be the option for most, however this weekend well renovated property captured some great results – 1 Oulton Street, Caulfield North sold well for $2,325,000 after being on the market at $2,200,000 and 810 Drummond Street, Carlton North attracted a large crowd and a great price against a quote of $3,000,000 – $3,300,000.

November is set to to hold the most amount of auctions in one month this year – with around 3600 expected to take place. Buyers are being provided with far more choice and some good opportunities.

Auction Wrap – October 30th & 31st 2010

The auction clearance rate remained steady this weekend despite the drop in auction numbers due the Melbourne Cup. There were 354 auctions that took place this weekend of which 236 sold and 118 passed in.

Results overall appear solid for good property, however we are still not witnessing those ‘run away results’ we did at the beginning of the year.

Of note this weekend was the sale of 27 Cocoa Jackson Lane, Brunswick which sold for $1,100,000 against a quote of $900,000 – $990,000 – quite a strong result.

Over the next three weekends around 2600 auctions are expected to take place.

Super Saturday does as expected by just scraping through

Nothing out of the ordinary here on Saturday. 1% point up on last week but plenty of auctions suffering from bidder depth. Most auctions we witnessed had a ‘pass in’ scenario to help reach a conclusion.

Exceptions though always exist. For the ones we bid on Saturday were mainly very competitive. The good house is taking the buyers and not enough buyers are left around for anything low – mid tier property.

Take 16 Brooke Street, a fine home in Eaglemont. A reserve of $2.7m was quickly passed and a final sale price of an undisclosed sum – yet in excess of $3.5m was the outcome.

Auction Wrap – 16th & 17th October 2010

Auction clearance rates have fallen 1% this week, from last weekend. There were 637 auctions that took place, of which 430 sold and 207 passed in, resulting in a clearance rate of 67%.

It seems buyers are holding back – waiting to see how the auction plays out, instead of what we witnessed at the beginning of this year – buyers diving straight in and competing fiercely.

Having said this though, some properties are still hotly contested, like 217 Canning Street, Carlton (pictured) which sold for $960,000 on the weekend.

Next weekend should be interesting in terms of market performance as it is set to hold a record number of auctions and prove very busy – the busiest infact since March 15th & 16th 2008 (the biggest auction weakend ever).

Auction Wrap – 2nd & 3rd October 2010

The grand final replay was a curve ball that no one had predicted, yet the market held up rather strongly over the weekend.

Most auctions that were due to be held after the initial start to the grand final were either auctioned earlier on in the day, auctioned the following day or are scheduled for this Saturday.

The main damage to owners from the weekend, was just a second poor week of open for inspection turnouts with Saturday afternoon inspections.

With this in mind, I didn’t feel places struggled due to the grand final taking place as most auctions adapted well even with changed auction times.

In terms of standout results, 46 Molesworth Street North Melbourne which was a renovated single fronted place quoted $850,000 – $940,000 sold for $1,200,000. That is very strong.