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The Saturday before the Melbourne Cup holiday weekend is usually one of the biggest days of the year for residential property auctions in Melbourne.
This year, however, the market was more subdued. In this video, Wakelin director Jarrod McCabe explains why.
The auction statistics mentioned were published by the REIV.
Below is a full transcript of Jarrod's comments:
"So we’ve just passed our Super Saturday for 2018, and this year we’ve had just over 1200 auctions, which is significantly down on the same time in 2017, when we had close to 2000 auctions.
The clearance rate is certainly dropping since the end of winter. We’re down to around 52%, last week was actually below 50% at 49%, which compares with 72% last year.
Now, it is normal for the spring market to show a drop in the clearance rates. Last year, we went from the high 70s at the start of spring down to low 70s, so it’s not unusual for this to happen, even in a peak market.
But it has certainly dropped to levels that are very much in favour of the buyer at present.
If there’s some point of difference to a property there’s still typically interest, but even properties that would be considered to be outstanding in terms of their floorplan, location, position, that type of thing, are not seeing the depth of buyers in the marketplace and we’re seeing those pass in.
More often than not they’ll sell within a few days of the auction but it’s becoming more and more common that these properties will pass in.
Buyers just don’t feel as though there’s a need to compromise at present and they’re holding firm on expectations."