Rain, a rate hike and even a looming federal election failed to slow down Victoria’s auction market yesterday.
Home prices soared to $500,000 above their reserves in what may turn out to be the state’s busiest week of May for homes ever going under the hammer.
Auction data from Realestate.com.au shows that Victoria posted a preliminary cleanup rate of 84 percent based on 390 reported results.
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Figures from the Real Estate Institute of Victoria showed as many as 1,420 homes were slated to test the market before the end of Sunday as sellers try to beat the polls.
While that’s enough to break the record of 1,287 reported for the week ending May 9 last year, sellers withdrawing homes from the auction market could knock this week’s numbers down by as much as 200 by the time they get home. the figures will be rounded up by the middle of next week.
But for the sellers who penetrated, big results were at stake yesterday.
Sam Rigopoulos, Victoria’s recently crowned top real estate agent, sold a Northcote home for a staggering $502,000 over reserve.
Jellis director Craig Northcote put the unusual architectural design with a slightly shaky-looking facade at 11 Thames St up for sale with a $3.8 million reserve.
But with four bidders chasing the house, the hammer only came in at $4.302 million.
“That’s a great reflection of the high end of the Northcote market,” said Mr Rigopoulos.
He added that another family home he sold yesterday in the suburb at 18 Yeomans St had exceeded its reserve by $300,000 in a $3.2 million deal.
REIV chairman Richard Simpson said there were “good numbers at openings and auctions” despite a rainy day.
“And it’s clear that some buyers are cashed in and eager to go,” said Mr Simpson.
“But some said they’ll wait to see what interest rates will do — which I didn’t hear last weekend.”
Despite this, he said the market still looked good, something he expected to continue for the foreseeable future as sellers “meet the market” and buyers searched for properties that met their needs, pending a deal. traditional silence on the winter real estate market.
While auction numbers are expected to top just over half this week when Australia goes to the polls next Saturday, Mr Simpson said he expected real estate to get a confidence vote while people were out and about.
“They might vote in the morning and buy a home in the afternoon,” he said.
The week after the election is expected to set a new auction record in May, with 1,560 auctions scheduled between May 23 and May 29.
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