‘A market in balance’: clearance rate holds steady 70.8 per cent

In Melbourne, the preliminary clearance rate held at 68.6 per cent, just 0.1 per cent higher than last week’s 68.5 per cent. Melbourne auction volumes were also up with 1107 properties sent to auction compared to last week’s 1029.

In Brisbane, 66.1 per cent of 167 homes sent to auction recorded were cleared in preliminary figures, while Adelaide clocked a clearance rate of 83.8 per cent across 173 properties.

Homes sell above reserve, not ‘runaways’

A four-bedroom original condition home in the Sydney suburb of Croydon sold for $2.91 million, about $300,000 above the guide. Five parties traded more than 20 bids at the crowded inner west auction, vying for the unrenovated property which had been held by the same family for 54 years.

The hammer looked set to fall at $2.75 million, when a fifth bidder – an upsizing family from neighbouring suburb Ashfield – entered the fray. The family’s buyers agent secured the deceased estate with a winning bid of $2.91 million.

Selling agent Marco Errichiello, of Rich & Oliver, said the result was stronger than he expected.

“I had three auctions on Saturday, and they all went above reserve.”

In the Melbourne suburb of Armadale, two active bidders competed for a four-bedroom Victorian-era property on Auburn Grove, which sold under the hammer for $5.1 million – well above its initial $4.4 million guide, which was later revised up to $4.9 million due to strong interest.

Israel, oil prices & interest rates

Buyers advocate Emma Bloom said the result was strong – but not crazy – and warned the conflict in Israel had begun to affect vendor sentiment.

“It’s not a runaway result, there is caution in the market, and people are definitely feeling the uncertainty. That will be reflected in results moving forward,” Ms Bloom said.

“Everyone is feeling the heaviness of what is going on, so I think it’s a brave vendor that will now go to the open market.”

SQM’s Louis Christopher said if the geopolitical instability pushed oil prices up, the resulting inflationary pressures could encourage the RBA to hike interests rates on November 7.

“It will create some additional doubt, so does the RBA stop at one hike or does it go for more? Also, how many would-be buyers does this knock out?”

Lingering listings

BresicWhitney CEO Thomas McGlynn agreed that the sellers’ market had begun to recalibrate in the lead up to Christmas.

“For most of the year the market has been in the sellers favour, and now it’s coming back to the middle,” Mr McGlynn said.

“Days on market have started to extend, so it’s taking slightly longer to find the buyer, and there are more properties coming on to market.

“Combining these factors you have a greater pool of properties meaning you have more choice.”