by Antony Bucello
The REIV has reported a clearance rate of 53%, which is the same as last weeks revised clearance rate.
A total of 362 properties went to auction and were reported to the REIV this week and 193 of those sold and 169 passed in. 113 of the properties that were passed in were passed in on a vendor bid.
This time last year, a similar amount of properties went under the hammer and the clearance rate was 66%.
The Reserve Bank is due to meet on Tuesday this week (Melbourne Cup day) and it is widely expected that interest rates will either remain the same or we will see a cut. It has been exactly 12 months since the Reserve Bank last increased interest rates. While a cut to interest rates would be welcome news to many buyers and those with existing mortgages, the reality is that it is unlikely to have any effect on the state of the market in 2011. It is likely however to encourage more buyers into the market in 2012.
The REIV is expecting close to 600 properties to go under the hammer next weekend followed by around 870 the week after.
The NPB Clearance Rate for the week was 68%, down slightly from last week when it was recorded at 69%. A total of 38 properties were reviewed by the team at NPB this week and 26 of those found new owners and 12 passed in.
The lower end of the market (under $600k) had another solid performance with a clearance rate of 71%, up 2% from its performance last week. 10 of the 14 properties we reviewed sold and 4 passed in.
The middle range category ($600k-$1m) dominated this week with a very healthy NPB clearance rate of 73%, up 2% on last week when the NPB clearance rate for this category was recorded at 71%. We reviewed 15 properties in this range and 11 of those sold and 4 passed in.
The high end of the market ($1m+) had a clearance rate of 55%, with 5 of the 9 properties we reviewed in this category selling and 4 passing in. This is down 6% on last weeks’ performance in this category when the clearance rate was recorded at 61%. This sector of the market is proving to be more volatile than the other two, which has always been the case.
The full list of the 38 properties we reviewed this weekend:
Auctions In The Spotlight
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