Auction Results Week Ending May 8 2011

The clearance rate this week again is a consistent 60% as reported by the REIV. A total of 348 properties sold out of 577 scheduled auctions.

Agents are struggling to get a lot of action at auctions

This is considerably lower than at the same time last year, when there was a lot more activity with 887 auctions and a clearance rate of 76%. Many auctions this weekend failed to attract a single bid.

It is certainly a market that is favouring buyers and conditions are expected to remain the same for the rest of the month with around 1400 auctions scheduled for the next 2 weekends. Good quality property is still attracting good competition.

The NPB clearance rate for this weekend was 76%, with 10 of the 13 properties we monitored selling. The good property continues to do well and is always more likely to withstand supply versus demand pressures. A number of properties we monitored over the weekend exceeded the reserve of vendors. A 4 bedroom, 2 bathroom period house at 8 Camden St St Kilda East which was quoted at $800-850k sold under the hammer with multiple bidders for $945k.

There are plenty of opportunities presenting themselves for savy investors. A 2 bedroom Art Deco apartment in great condition in Lennox St Richmond sold for $525k on a quote of $450-500k.

The full list of the properties we reviewed this weekend:

Suburb Type Beds Quote Result
Ascot Vale Apartment 2 $340-370k SOLD $370k
Ivanhoe Villa Unit 2 $450-490k SOLD $475k
Richmond Apartment 2 $450-500k SOLD $525k
Hawthorn Apartment 2 $450-490k SOLD $526k
Elwood Apartment 2 $500-550k SOLD $558k
Yarraville House 2 $520-550k PASSED IN
Carnegie Villa Unit 2 $550-600k PASSED IN
North Melb. Apartment 2 $600-650k SOLD $660k
Moonee Ponds House 3 $650-710k SOLD $775k
Northcote House 3 $680-740k SOLD $825k
Fitzroy North House 3 $700-770k SOLD $836k
Essendon House 3 $800-880k SOLD $875k
Balwyn North House 4 $900-990k PASSED IN

While the overall clearance rate is reported at 60%, the clearance rate for properties that sell “under the hammer” is around 49% (286 from 577). That means there is a very good chance you will be negotiating with the agent, perhaps on a pass in scenario or before the auction if you are considering putting in a pre-auction offer.

With a market favouring buyers at the moment, negotiating with agents can cost you thousands unless you know what you are doing and have done your homework. You must do your research before you enter into serious negotiations and play hard ball if the conditions are right for you to do so.

Antony Bucello – National Property Buyers

0418 131 950