Spring market hits top gear in November. But clearance rates ease on the throttle.
Over the four weekends of November there were in excess of 3,950 auctions reported to the Real Estate Institute of Victoria (REIV). More than 3,092 sales were recorded. Approximately 858 properties passed in with 370 of those on a vendor bid. The clearance rate averaged 76.5%, down on October’s booming 80% but way up on last year’s November average of 67%.
Stock going to auction was more plentiful in November however clearance rates were lower, at 76.5%, compared with October’s 80%.
Reflecting rising home values, November’s median auction price on the last weekend was $856,000, 13% more than the same weekend last year at $755,000. A tidy $101,000 annual increase.
Property trends attracting attention in November included the growth across Melbourne in the subdivision of existing home blocks to get added value from existing titles.
Subdivision and dual occupancy has always been an option in suburbs where backyards are spacious but it’s now experiencing a surge. Frankston Council for example, reports half of the 548 new developments registered in 2015/2016 were subdivisions of existing homes. In some cases if the front yard is bigger than the back, the owner will sell the front. This activity will keep growing as home owning baby boomers go further into retirement and become more cash-strapped.
Melbourne’s property market will remain in top gear through most of December with more than 3000 homes going to auction before the Christmas & New Year break.
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