Nearly two thirds of Melbourne home sellers who went to auction last week sold, despite having to reveal their reserve prices early. Greater Melbourne recorded a preliminary clearance rate of 60.1% from 539 auctions, according to realestate.com.au. A three-bedroom townhouse in Reservoir sold for $831,000 after attracting five registered bidders, with a young couple buying their first home. The agent lowered the reserve after buyer feedback and then agreed to $795,000 with the owners. Nationally, the preliminary clearance rate was 41.5% from 1,593 homes scheduled for auction.
First-home buyers paid $1,286,000 for a five-bedroom terrace at 201 Swan Street in Richmond after a seven-minute auction contest. The buyers' girlfriend's father helped them meet the final price. Melbourne's preliminary auction clearance rate reached 56 per cent, the highest among the nation's capitals. A Malvern house passed in below its reserve, while a Northcote house sold for $1.5 million. Agents said house prices are down, and some expect another interest rate rise.
Melbourne sellers chasing unrealistic prices are contributing to the city's auction struggles, according to auctioneer Luke Banitsiotis. REA Group figures showed Victoria recorded a preliminary 62.8 per cent clearance rate on Saturday, with 236 sales from 376 reported results. Banitsiotis said owners who set realistic reserves drew four or five bidders. Buyer's advocate Cate Bakos said well-located homes needing renovation faced less competition than renovated family properties. Several homes sold above their published reserves at auction, including a North Melbourne property that reached $1.506m.
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Victorian property agents are reportedly shifting away from auctions towards private sales and open-ended expressions of interest. The new laws require sellers to publish their reserve, the lowest price they will accept, at least one week before an auction. Estate agent groups have criticised the changes as confusing. Agent Nicole Jacobs said it was too early to judge whether the reforms would fix underquoting, the practice of advertising a property below its likely sale price. Analysis by Guardian Australia found agents claiming no comparable sales existed when many did.
Fewer homes went under the hammer across the nation's capital cities last week, with Melbourne recording the steepest fall. Data from Cotality showed Melbourne auction numbers dropped 29 per cent on the previous week after Victoria introduced rules requiring reserve prices to be published a week before auctions. Overall capital city clearance rates rose to 51 per cent, the highest in four weeks. Cotality said national house prices have fallen 5.2 per cent since March. Fewer auctions are also scheduled for the coming week, with Melbourne numbers down 70 per cent on the same time last year.
Victoria's new auction disclosure rules drew criticism in their first weekend, with auctioneers and agents warning of confusion and less transparency for buyers. Real estate figures showed a preliminary 55.5 per cent clearance rate from 371 early results. Auctioneer Andy Reid said the laws would create chaos, noting that homeowners could still change their reserve once an auction began. Melbourne auction volumes are down 53 per cent on last year for next week. Minister for Consumer Affairs Tim Richardson said the reforms would help stop underquoting.
A two-bedroom 1970s apartment in Carlton North sold for $752,000 at auction on Saturday, almost $40,000 above its listed reserve. Three bidders competed for the top-floor home at 15/109 Wilson Street, which the vendors had owned as an investment for more than 35 years. The buyers were a couple with a design background who are first home buyers. Agent Charles Atkins said the new rule requiring vendors to publish reserves at least seven days before auction had brought more transparency.
A two-bedroom 1970s apartment in Carlton North sold for $752,000 at auction on Saturday, almost $40,000 above its listed reserve. Three bidders competed for the top-floor home at 15/109 Wilson Street, which the vendors had owned as an investment for more than 35 years. The buyers were a couple with a design background who are first home buyers. Agent Charles Atkins said the new rule requiring vendors to publish reserves at least seven days before auction had brought more transparency.
The Block host Shelley Craft has revealed that all five homes in the latest season will have the same reserve price of $3,450,000 at auction. The price is double the Mount Eliza median home price of $1,720,000, according to realestate.com.au quarterly data. The reserves were made public because of new Victorian laws requiring sellers and agents to disclose reserve prices at least seven days before auction. The laws aim to reduce underquoting, which is advertising a property at an unrealistically low price. Craft said the reserves are the starting point for the auctioneers.
The Block host Shelley Craft has revealed the reserve price for the five houses in the upcoming series, a week before auction. The early disclosure follows new Victorian legislation requiring agents to reveal a home's reserve a week before auction. The reserve is $3.45 million, with a sale guideline of $3.6 million to $3.9 million. Scotty says contestants were less upset than in past seasons, though they are never happy with reserves. Judge Shaynna Blaze says the reserves are a bargain for the area and the houses' quality.
From October 16, Victorian sellers must advertise the reserve price at least seven days before an auction or fixed-date sale. The new rule aims to curb property underquoting. Several sellers have already published their reserves early. In Gladstone Park, a house with a $700,000 reserve sold for $801,000 after four bidders competed. In Watsonia, a home with a $1 million reserve sold for $1,090,000. The Real Estate Institute of Victoria backed the transparency aims but opposed the seven-day requirement.
A four-bedroom Art Deco home in Essendon passed in at $2.55 million at auction on Saturday, then sold in post-auction negotiations for $2,655,000. The buyer, a local professional looking to upgrade, paid just below the $2.7 million reserve. Domain recorded a preliminary clearance rate of 58 per cent across Melbourne, with 78 auctions withdrawn. From Friday, new state laws require vendors to publish reserves at least seven days before auction. Agents say buyer hesitancy is growing after the September interest rate rise.
