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Spring real estate market blooms early in Victoria.



 

Spring is finally here, and the Victorian real estate market is already blossoming.

With over 400 homes sold under the hammer this weekend, it looks like vendors can expect a healthy yield this selling season.  Of the 658 auctions that took place, the Real Estate Institute of Victoria (REIV) recorded 420 as sold under the hammer. This brought the clearance rate to a robust 75% versus  61% for the 476 auctions that took place this same week last year (source: www.propertydata.com.au).

Strong since early August, experts point to auction clearance rates as a positive sign of things to come. With 47 Victorian suburbs recording 100% clearance on multiple auctions this past weekend, there is much to indicate continued and increasing demand for property.

The REIV also recorded a strong week in private sales, with 380 properties going for an average price of $484,921.

This increase in demand requires buyers to be more decisive.  With fewer properties passing in and days on market reducing, as well as the absence of the usual September listing surge, there are fewer opportunities to negotiate before a property is snapped up. Experts predict a Spring that will reward those who have a clear buying plan that is acted on confidently.

However, with much of the increased buyer activity attributed to the historically low interest rates, tomorrow’s scheduled announcement by the Reserve Bank weighs heavily on the minds of estate agents, vendors and prospective buyers alike. Coupled with the looming election and the temperamental Aussie dollar, there are obstacles to surmount before a successful Spring can be promised. Given Saturday’s strong results and over 500 auctions booked for next weekend, the outcome looks good for the Victorian vendor.

Check back here tomorrow for our rundown of the RBA announcement.

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