MORE than 2000 homes changed hands this week across Melbourne, encouraged by the news interest rates will not move in 2013.
The Reserve Bank decision on Melbourne Cup Day to keep official rates at a historically low 2.5 per cent has been credited with helping the property market record another week of steady results.
Preliminary figures by national real estate statistics provider RP Data show 689 scheduled auction properties sold under the hammer this week, 307 didn’t sell, and 126 results are not yet submitted.
This week’s auction clearance rate of 69.2 per cent is down slightly on last week’s 70.8 per cent, which was based on less than 200 auctions.
The number of house sales dropped by more than 10 per cent to 1386 this week.
Average listings are spending less time on the market as the year winds to its end, according to agents and this is supported by RP Data figures showing Melbourne houses currently spend 33 days on the market before selling and apartments/units take 38 days to find a buyer; just a week ago those figures where 34 days and 41 days respectively.
Nicholas Lynch, of Nicholas Lynch Mornington, reported ”very strong activity” in the Peninsula property market this week including the multimillion-dollar sale of a cliff top four-bedroom house at 2 Tintagel Court Mt Eliza.
The exact sale price of the luxury home is undisclosed but Mr Lynch confirmed it was ”well within the advertised range of $6 million to $6.6 million.”
”We are seeing three times the level of buyer interest we saw last spring, at least, and I have identified the Peninsula Link is what has really lifted that demand,” he said.
”Prices of $1 million to $2 million are now pretty run of the mill for houses between Mt Eliza and Mt Martha.”
Most of Melbourne’s top auction results this week came from inner eastern suburbs, which is no surprise to Marshall White agent Joanna Nairn who reported a consistent ”buzz” of buyers wanting to secure deals before the market goes on holiday on December 14.
Anyone who has used the market’s upturn since winter to sell their own home is now motivated to re-invest in the next six weeks, or face waiting until next February, she said.
”There is still not really a lot of stock about and Christmas is quickly coming.”
Hocking Stuart Armadale’s Andrew James thinks prospective buyers drew confidence on Tuesday from learning official interest rates will not rise this year: ”It was just business as usual.”
Caroline James, Herald Sun, November 10 2013
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