Melbourne Wakelin auction market report, 1 June 2019
Jarrod McCabe, director, Wakelin Property Advisory:
"The auction clearance rate has hit the 60 per cent mark in Melbourne again after languishing around the 40- 50 per cent mark for the past 12 months or so. This does however overstate the vitality that's currently in the marketplace at the moment. There certainly are fewer bidders around for the majority of properties. And most properties that do sell on the day have got very limited buyer demand. Perhaps one or two bidders are there.
For instance, we've saw, observed two properties on the weekend in the same street in Prahran. Both passed in for around $1.1 million dollars. And only really had one genuine bid across both auctions. This scenario really does encapsulate how easily the market can be oversupplied when it's as sensitive as it is at the moment.
So vendors will certainly be hoping that the talk of lower interest rates and easing of lending restrictions will start to give buyers a bit more confidence. And buyers will be hoping that that does actually give some vendors more confidence too. Because the supply levels at the moment are very limited as I think we mentioned in our last video we're down from 50 per cent for May compared to 2018.
So now we are coming up towards the first weekend in June which is obviously the first weekend in winter. Notoriously the market does move into hibernation mode. So there's less likely. We are seeing about 700 auctions planned. According to the REIV this weekend. Although the quality is not the greatest and it is quite limited.
From there, we've got the Queen's Birthday long Weekend the following weekend. Which will be our next interruption to Melbourne's property market. And we'll then have a reasonably clean run up to the July school holidays. Thanks very much."