‘Elephant in room’: Melbourne sellers blamed for auction woes

Melbourne’s auction market is facing a test of seller expectations, with REA Group figures showing almost as many Victorian homes sold before auction as under the hammer. Melbourne sellers chasing unrealistic prices are contributing to the city’s auction struggles, a leading auctioneer has warned. REA Group figures showed Victoria recorded a preliminary 62.8 per cent clearance rate on Saturday, with 236 sales from 376 reported results. Of those, 120 sold under the hammer, 113 before auction and three afterwards, while 106 auctions were withdrawn. The results came as 774 Melbourne auctions were scheduled for the week, 56 per cent fewer than a year earlier. RELATED: ‘Huge risk’: Wild $9m offer for unfinished Brighton homes $5bn homes gone: Foreign buyers flood Aus Melb home’s $1m garden rivals original price Ray White Victoria and Tasmania chief auctioneer Luke Banitsiotis said sellers were still expecting more than buyers were prepared to pay. “I think the elephant in the room is just that vendors are trying to still overshoot the market,” Mr Banitsiotis said. Under Victoria’s new laws, sellers must disclose their reserve at least seven days before auction. Mr Banitsiotis said owner...