Melbourne auctions: Clock is ticking on the opportunity to buy before Christmas

Potential home buyers are mindful that the clock is ticking on buying at auction before the Christmas break, with clearance rates holding firm.

This Saturday, 805 auctions are scheduled in Melbourne, slightly fewer than last week. Next weekend is forecast to be the first Super Saturday of the season, with more than 1300 auctions.

Despite fewer homes for sale this spring than usual, the market is surprisingly robust, Domain economist Trent Wiltshire said.

“The market rebound has been a lot stronger than expected,” he said. “In Melbourne, Saturday clearance rates have been above 70 per cent for eight of the past nine weeks.”

Melbourne’s housing market has rebounded from its downturn in the months since the clear federal election result, boosted by cuts to official interest rates and a move by the bank regulator to let buyers borrow more money.

Buyers have been coming back to the market faster than sellers, with some homes drawing multiple bidders fighting it out and pushing prices well above expectations.

Wakelin Property Advisory director Jarrod McCabe said the countdown clock was ticking for the Christmas break.

“One of the key things people are starting to bear in mind is that there are only a few more auction weekends for 2019,” he said. “The end is getting closer and closer, and there are limited opportunities to buy before the end of December.

“If you don’t secure something then, you’ll be waiting until early to mid-2020 to buy.”

Nelson Alexander auctioneer Arch Staver agreed.

“We’re reaching the musical chairs stage of the auction year,” he said. “They don’t want to be left without a chair when the music stops, and the music will stop very soon.”

But Mr Staver said he had noticed buyers in the $1.5 million to $2 million price range were becoming more cautious.

“I don’t think they’re getting more excited. If anything, I think recent coverage about the reemerging strength in the market has made them more cautious than they have been in a month or so,” he said. “They’re doing a bit more due diligence.”

The stiff competition at auction was tempering the enthusiasm slightly, and the prospect of more auctions to choose from next week would influence buyers’ choices this Saturday.

“I don’t think any buyer wants to be a part of that story that appears in the paper that says, ‘House exceeds reserve by $150,000,’” he said. “It’s not uncommon for a buyer who has missed out on a property, and has been outperformed, to contact us a few days later with a sense of relief saying they’re glad they didn’t go as hard.”

SOLD - $2,815,000

141 Barkly Street, Carlton VIC 3053

4

1

1

View property

Mr Staver is set to auction 141 Barkly Street, Carlton on Saturday, and said it was a rare opportunity to buy a three-level home near the Carlton Gardens.

The Victorian terrace boasts a light-filled glass conservatory leading into the back gardens and is listed with hopes of $2.4 million to $2.6 million.

Domain’s Mr Wiltshire said a resurgence of investors was helping to fuel the rebound.

“This rapid turnaround is not good news for first-home buyers,” he said. “There’s lots of competition at auctions now, with investors coming back into the market.

“Lending to investors in Victoria has jumped 19 per cent in the past three months. For owner-occupiers, it’s 10 per cent.”