Melbourne’s first spring auction weekend saw a clearance rate of 58.8 per cent, with buyers fiercely competing for some homes while remaining extremely picky on price.
Sellers in Melbourne are facing a reality check in the spring as buyers are still fiercely competitive but very picky about what they are willing to pay.
Data from REA Group shows the first weekend of spring saw a clearance rate of 58.8 per cent across 369 reported auctions in Melbourne.
Of these, 117 homes were sold under the hammer and 97 changed hands before the auction, while a further three were sold afterwards.
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At the top end, Templestowe recorded Melbourne’s largest reported auction of the day, with 11 Smiths Rd achieving $2.17 million.
A three-bedroom home at 275 Princes St, Port Melbourne followed for $1.975 million, while 7 Lille St, Surrey Hills sold for $1.96 million.
But one of the clearest signs of buyer interest came much further down the price scale.
11 Smiths Rd, Templestowe, was Melbourne’s most frequently auctioned house, fetching $2.17 million.
The home at 275 Princes St, Port Melbourne, sold for $1.975 million, Melbourne’s second highest reported auction result.
Seven active bidders competed for an original three-bedroom house at 1230 Plenty Rd, Bundoora, beating the top price of $600,000 to $660,000.
Bidding started at $500,000 before the next buyer immediately increased the price by $100,000 to $600,000. The hammer finally fell at $755,000.
Buyers thronged 7 Lille St, Surrey Hills to a $1.96 million auction sale, making it one of Melbourne’s biggest results of the weekend.
6 Howitt St, Northcote, changed hands under the hammer for $1.91 million as million-dollar homes continued to find buyers across Melbourne.
Ray White Bundoora auctioneer Domenic Torzillo said most bidders were investors looking for opportunities in the weaker market.
The property attracted 21 groups in the first week of the inspection, followed by 19, 16 and 22 in the remaining three weeks.
Mr Torzillo said the final price exceeded his expectations and the seven-bidder competition was a reminder that strong competition had not gone away.
Ray White Bundoora’s Domenic Torzillo said seven active bidders competed for a house on Plenty Road before it sold for $95,000 over the top price on its price list.
He said it felt like a return to the busier Saturday auctions that agents have become accustomed to in stronger markets.
Ray White Victoria and Tasmania chief auctioneer Luke Banitsiotis said price sensitivity was the defining characteristic of the current buyer pool.
Ray White Victoria and Tasmania head auctioneer Luke Banitsiotis said Melbourne buyers remained very price sensitive despite strong competition at well-positioned auctions.
Ray White recorded 7,563 buyers through inspections during the week, while auction listings attracted an average of 4.6 visitors in the first week, compared to 2.2 for private sales campaigns.
“The defining characteristic of the current buyer pool is high price sensitivity, making strategic campaign positioning essential,” said Mr. Banitsiotis.
He said auction campaigns still create urgency and competition, but sellers need to carefully position their homes to entice buyers to move.
The strength wasn’t just limited to the cheaper end of the market.
The Essendon owners of 20 Washington St paid $55,000 in 1982 before selling their California bungalow after 44 years for $1.842 million.
A California bungalow in Essendon at 20 Washington St sold for $1.842 million, the fifth highest reported sale in Melbourne to go under the hammer.
The sellers had bought the house in 1982 for $55,000 and raised their children there for 44 years before deciding to move permanently to St. Leonards.
Jellis Craig Moonee Valley agent Kelli Johnson said despite Melbourne’s spring selling season approaching, sellers were still hesitant about their listing plans.
Jellis Craig Moonee Valley agent Kelli Johnson said the bidding was initially stalled before a neighbor seeking to expand joined the competition, sparking a dispute between two buyers.
Ultimately, a young family secured the house. Ms Johnson said both buyers and sellers cried tears after the outcome.
However, she said the expected increase in listings so far in the spring has been more muted than many brokers expected.
Inventory had increased, but cautious sellers were still holding back.
REA Group data also recorded 125 auction withdrawals.
“People are waiting,” Ms. Johnson said.
“There’s a lot of pause at the moment.”
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