Melbourne’s auction fever expected to increase this week
Article by Rebeccah Elley
For the first half of 2014 Melbourne has been in the grip of an auction fever and is expected to increase this week ending 13 July, according to RP Data.
The data showed there are 527 auctions scheduled this week in Melbourne compared to 426 for the same time last year. The largest increase over the last year was found mainly in inner city suburbs, such as Middle Park, Hawthorn East, Braybrook, Balwyn North and Praharan.
Housing market specialist Robert Larocca described the Melbourne market as “delivering consistent results for sellers in the past 4 weeks with very little change in the weekly clearance rate.”
Real Estate Institute of Victoria (REIV) stated there has been a citywide “auction explosion”, with 18,244 auctions this year, ahead of the busy first half of 2010, when there were 16,071 auctions. If you’re on the hunt for a new property, secure your pre approval before you go to an auction. You can search Mozo’s home loan section here.
The outer suburbs, traditionally dominated by private sales, also saw a significant increase in auction numbers. REIV chief executive officer Enzo Raimondo said the enthusiasm for selling at an auction extends well beyond the traditional auction heartland of Melbourne's inner suburbs.
Raimondo noted areas such as Wheelers Hill have hosted 60% more auctions than in the same period last year. "In fact the suburb with the most auctions was the large, middle northern suburb of Reservoir, with 284 auctions. Second was Richmond with 241 – the reverse of the first six months of last year, when Richmond topped the list and Reservoir was second."
Raimondo said overall Melbourne’s property market has been "solid" helping to drive the increase in auctions, as stronger interest from buyers can lift the number of homes going to auction.