Melbourne auction preview: Spring selling season set to extend into summer

The Melbourne auction market is holding strong, with even more properties expected to come up for sale between now and the looming end of the year, experts say.

Some 978 auctions are set to go ahead on Saturday, and 1301 are forecast for next week, a Super Saturday.

Domain economist Trent Wiltshire said the clearance rate was still strong, and predicted more big weekends before Christmas as the traditional spring selling season continues for longer.

“They’ve held at about 70 per cent on Saturdays with more than 1000 auctions, this shows there’s strong demand among buyers,” he said. “The rebound has been stronger than most expected. Most indicators suggest the market will remain strong.

“People who decided to sell in November can sell their properties before Christmas if they want to. The spring selling season is extending into summer.”

Mr Wiltshire tipped price growth to be high over the next 12 months.

“Clearance rates at this level historically align with annual price growth of around 10 per cent, which is what the latest price data suggests is happening,” he said.

Nelson Alexander’s Rick Daniel said buyers were out in force.

“We’re in historic times in terms of interest rates, there’s consumer confidence back in the marketplace,” he said, adding the improved mood was creating a feedback loop.

“If you’re buying and selling in the same market, the buyer sentiment has improved and it continues to encourage people to buy and sell.”

SOLD - $1,866,000

135 Amess Street, Carlton North VIC 3054

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Mr Daniel will auction a run-down Edwardian on Saturday, the first time it has been listed for sale in about 50 years.

He said buyers were becoming less worried about picking up a fixer-upper and interest was keen for 135 Amess Street, Carlton North.

“That is something that we’re seeing, that buyers are open to ‘finding an improvable house in unimprovable location’,” he said. “That is something we hear a lot.”

The Agency’s Brendan Walker said it was still tough for buyers on Saturdays.

“Combined with low stock levels and the fact that money is cheap to get, there’s a lot of competition,” he said. “As long as money stays cheap and there’s confidence, there should be price growth over the next 12 months.”

SOLD - $1,360,000

16 Sydenham Street, Highett VIC 3190

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Mr Walker suggested it would be a more balanced market next year.

“We’re optimistic. We’re listing quite strongly for autumn already,” he said. “The early indicators are there may be a larger amount of stock, but we’ll have a good number of buyers able to lend and compete.”

Mr Walker is auctioning a family home in Highett on Saturday, and said it had proven popular ahead of the auction.

“It’s a pretty home, and it gives flexibility on its floor plan as well,” he said of 16 Sydenham Street. “So people see the opportunity.”