As Melbourne’s auction chaos leaves the owners of the best properties on the sideline, professional buyers are knocking on their doors.
Melbourne’s auction clearance rate is set for one of its strongest results since May after a weekend bounce back.
But the head of one of the state’s biggest real estate firms believes owners of the city’s best homes have walked away from selling for the time being, and professional homebuyers have revealed they are doorknocking to find options for their clients.
Latest PropTrack figures show the clearance rate by Monday morning was 50.3 per cent, having been revised down a hefty 5.5 percentage points from the preliminary 55.8 per cent recorded on Saturday.
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While equating to barely half the city’s sellers notching a deal, it’s the strongest figure since June 15, and one of just three above the 50 per cent margin since May when the federal budget included major changes to negative gearing and capital gains tax benefits for property investors.
It also coincided with one of the softest weeks for auction numbers this year, with Monday’s clearance rate derived from just 503 reported results.
PropTrack forecasting suggests the numbers will jump past 600 this weekend and closer to 700 for the final weekend of July, which could spread buyer demand.
PropTrack senior economist Megan Lieu notes a rebound in clearance rates could be a positive sign for homesellers.
Despite this, PropTrack senior economist Megan Lieu said the uptick last week could be a positive sign for Melbourne homeowners.
“The weekend’s rebound in clearance rates potentially shows early signs of sellers adjusting their expectations to meet market conditions, particularly in Sydney and Melbourne where clearance rates are higher than they have been in the previous three weeks,” Mr Lieu said.
“A rise in auction volumes could either stabilise or soften clearance rates in the weeks ahead depending on the interactions between the supply and demand of properties going to auction.
“And, if demand is strong, clearance rates could also improve”.
Jellis Craig chief executive Andrew McCann said they had felt recent weak clearance rates had, in part, been reflecting the time of year with many people pulling back during the school holidays and waiting for spring rather than winter to sell.
Melbourne’s most sought after homes have become conspicuously absent from auctions.
“We think the better stock is being held back for early spring, and the post-school holiday rush,” Mr McCann said.
“But owners and buyers are certainly meeting in the negotiation zone more frequently now than we felt the market was six to 10 weeks ago.”
One of the biggest firms in Victoria, the agency has noted clearance rates have come off a bit — and that prices have softened since March.
But Mr McCann said with signs both buyers and sellers were willing to meet in the middle, this could be a turning point.
“So I don’t think this is a blip, I think it’s a trend,” he said.
“People are getting on with it. I think Melbourne’s clearance rate will improve.
“We will look back at this window as potentially where the bottom of the market sat.”
Cohen Handler Victoria managing director Nicole Jacobs is at the point where she is doorknocking homes in a bid to secure purchases for her clients.
Prominent buyer’s agent Nicole Jacobs said when it came to really good homes, if the vendor didn’t absolutely have to sell at the moment they weren’t.
The Cohen Handler Victorian managing director said there was a surplus of “low-level stock we won’t purchase for our clients”, and while now might seem an ideal time for buyers to pounce — they needed to make sure they were genuinely getting a good home, not just a cheap one.
“We are knocking on doors now, though that isn’t entirely unusual for very specific briefs,” Ms Jacobs said.
Melbourne Clearance Rates This Year
July 13 – 50.3 per cent, revision pending
July 6 – 47.1 per cent, revised to 47.5 per cent
June 29 – 46.6 per cent, revised to 46.9 per cent
June 22 – 46 per cent, revised to 46.4 per cent
June 15 – 50.5 per cent, revised to 50.9 per cent
June 8 – 46.4 per cent, revised to 47.2 per cent
June 1 – 50.6 per cent, unrevised
May 25 – 50.3 per cent, revised to 51.4 per cent
May 18 – 52.6 per cent, revised to 51.4 per cent
May 11 – 51.8 per cent, revised 52.2 per cent
May 4 – 54.3 per cent, revised to 51.7 per cent
April 27 – 53 per cent, revised to 51.7 per cent
April 20 – 52.8 per cent, revised to 52.9 per cent
April 13 – 50.6 per cent, revised to 51.9 per cent
April 6 – 54.5 per cent, revised to 55.7 per cent
March 30 – 54.5 per cent, revised to 55.4 per cent
March 23 – 54.7 per cent, revised to 55.6 per cent
March 17 – 57.5 per cent, unrevised
Source: PropTrack
Data tracks intermediary clearance rate on Monday, and final revised figure by Wednesday, where available.
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