A SURGE in auction numbers after the election will officially kickstart what promises to be a strong spring property market for Melbourne.
The combination of the federal election and the AFL Grand Final have pushed almost 2000 homeowners to list their property for auction in the two weeks between the two big events.
The Real Estate Institute of Victoria is expecting up to 1000 auctions in a Super Saturday event on the weekend immediately after the poll. A further 900 are anticipated the following week.
Its predictions come after RP Data recorded a preliminary clearance rate of 73 per cent in Melbourne last weekend. According to RP Data, the clearance trend in Melbourne for auctions is 72 per cent.
The winter selling market was the strongest in recent years, but according to RP Data analyst, Cameron Kusher, there is further room for improvement.
“Given the strong winter season there’s definitely potential for the market to go back up to the 80 per cent clearance rate,” Mr Kusher said. “It’s been a long time since we have seen those levels – but it’s a real possibility.”
But even strong sales won’t result in the same massive price growth for property of 12 to 13 per cent a year seen in 2010, according to Mr Kusher.
RP Data figures indicate about 22 per cent of properties in Melbourne are selling via auctions, but that ratio is expected to grow after the election.
“A lot of real estate agents around the country seem to see a lot of people holding off going to market until after the elections, and buyers may have a bit more confidence after the election as well.
Buyers advocate Monique Wakelin, Wakelin Property Advisory director, echoed the sentiment and said it was possible a “honeymoon period” may lend strength to the market in the two weeks following the polls.
But the real strength of the market would only be revealed in October when pent up demand from the winter months cleared.
“We have the football finals and now we have the election and it wouldn’t surprise me to see significant fluctuation in the clearance rate,” Ms Wakelin said.
“But the acid test will be into October … if we still see clearance rates in the high 70s and into the 80s it will be a sign the market has turned.”
Check out last week’s sales results in our interactive map below. Zoom on the location to see details of properties that sold.
