Record breaking auctions!
In metropolitan Melbourne last month in excess of 2,400 auctions took place according to the REIV breaking an 18 year old record. Average auction clearance rates for July were above 74% and the Domain Group reported inexcess of 3,502 took place state wide – a staggering increase from the 2,407 homes that went under the hammer in the same month last year. It would be hard to argue that the stamp duty concessions for first home buyers up to $750,000 (introduced 1st July 2017) isn’t already having a significant impact on property prices particularly in what the REIV referred to as “bridesmaid suburbs” in Melbourne’s middle ring.
Vendors in these areas are also benefiting from buyers being priced out of inner city suburbs, with the median for a four-bedroom house within 10km of the CBD currently sitting at just under $2 million.
CoreLogic reported in the past two months five of the eight capital cities recorded healthy gains with the national capital city home prices lifting by 3.3 per cent. The annual July change of house prices in each of the capital cities were, Melbourne 15.9%, Canberra 12.9%, Sydney 12.4%, Hobart 6.5%, Brisbane 2.2%, Adelaide 2.1% while both Perth and Darwin slipped by -2.1%.
Did you know:
At hockingstuart Armadale our auction clearance rate (selling on auction day or before auction) this calendar year has been 80.65%. Interestingly we have seen a solid rise in buyers making very strong offers before auction and 21.51% of all auction properties have sold prior to the day. Our average number of days on market is a slender 23 days which further highlights the market strength and how properties even post auction are snapped up quickly (standard auction campaign length, 21 days).
With selling market conditions very favourable many vendors have already opted to put their property on the market. We are tracking to have one of our strongest August and September months on record and with the AFL grand final back in is rightful place next month, you’ll need to hurry to book your “one day in September”.