Melbourne’s auction market clearance rate is heading into uncertain territory.
MELBOURNE’S auction market has recorded its lowest clearance rate in more than half a decade.
Just 42.63 per cent of more than 1300 homes taken to auction yesterday were sold, according to preliminary CoreLogic figures.
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It marked Melbourne’s fifth straight week below 50 per cent. Last weekend, 46.18 per cent of homes sold at auction.
21 Kinkora Rd, Hawthorn, bucked the trend and sold for a hefty $6.1 million.
The last time a lower clearance rate was returned was the Queens Birthday long weekend in 2012, at 38 per cent.
CoreLogic Australia head of real estate Geoff White said the results showed buyers were seeking to drive hard bargains.
“They are obviously trying to negotiate heavily with deals and sales, as they would do in a market such as we have,” Mr White said.
“The increase in the number of auctions we’ve had this weekend has obviously meant buyers have had more to choose from, which could have lead to the lower preliminary clearance rate.”
19 Sunnyside Ave, Camberwell, also snared a sale at $3.46 million.
Auction numbers will remain high until mid December, with close to 1000 possible next weekend despite the state election.
Mr White said buyers and sellers should recognise today’s market reflected that seen in 2012, and would eventually turn a corner as it had in 2012.
Despite the poor clearance rate many homes still sold well.
A $6.1 million sale emerged at 21 Kinkora Rd, Hawthorn.
Buyers splashed $3,333,700 on 92 Bridport St, Albert Park.
And a 20 Collins St, St Albans, home sold for $1.281 million, more than $300,000 above its reserve.
“It’s important that buyers and sellers be aware that the figure might not be the same in the area they are in,” Mr White said.