Melbourne auctions: Buyers continue to face tough competition on Saturdays

Auction numbers are climbing in Melbourne, but buyers continue to get into to pitched battles on weekends because pent-up demand for homes has kept clearance rates high.

A total of 839 auctions are scheduled for Saturday, up on last week’s 704. Slightly fewer are so far expected next week, and a potential super Saturday is on the horizon for the week after.

Domain economist Trent Wiltshire said there was more buyer demand than there were houses for sale after a spike in interest in property following the federal election.

“The average number of people attending an open for inspection in Melbourne is 20 per cent higher than it was in June, but has been steady for the past couple of months, according to Homepass data,” he said.

“It’s maintained at a ‘high-ish’ level.

“So there should be a similar level of competition out there in the coming weeks.”

Clearance rates are still strong, hovering at about 70 per cent, Mr Wiltshire said.

“Some people thought that clearance rates might fall as more properties were put up for auction in spring, but it hasn’t been the case,” he said. “I think prices seem to be rising at about the rate predicted by clearance rates of around 70 per cent.”

Marshall White director John Bongiorno agreed with, saying that despite auction numbers being up, the market was yet to recover fully from the weakness seen earlier in the year.

“Stock levels are trending back very slowly to levels we had a couple of years ago. But the rate of buyers coming into the market is outstripping the number of sellers coming into the market,” he said.

But keen buyers were back in the market, armed with pre-approved loans, Mr Bongiorno said.

“Money is cheap at the moment, and it will be for a while,” he said.

Longview Real Estate’s property adviser Mark Brilliant said there wasn’t much time in the year for buyers to get into a new home before Christmas.

“There’s some heat back in the market; there’s a realisation that the market’s seen it’s bottom and we’re in a recovery cycle,” he said. “I don’t think there’s desperation, but there is some urgency from buyers who realise there are only four to six weeks of new listings for the year.”

SOLD - Price Withheld

U1-4/37 Havelock Street, St Kilda VIC 3182

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Pitard Group head of real estate Marianne Pitard has a particularly popular series of auctions going ahead on Saturday: four units in a newly-renovated block at 37 Havelock Street, St Kilda.

“It was a double-fronted, heritage-listed Victorian [house] that has been converted into four really cleverly and well-designed stunners in the middle of St Kilda,” she said. “The [open for inspections] have been overpopulated, they’re scheduled to run for half an hour, and they go well over an hour.”

Ms Pitard said she’d had interest from all buying demographics.

“We’re doing four auctions, back to back, about 10 minutes apart,” she said. “That’s giving everyone an opportunity, so if they miss out on one, they can get the next.”