February Auction Clearance Rates Finish Strong
A big start to the year with Melbourne/Victoria leading the charge in auction clearance rates! Despite reports of a weakening property market and talk an impending crash, preliminary clearance rate results for Melbourne came in at 75% (as of Sunday 28 February). So still seems to be plenty of people ready to bid and buy that first or additional property, taking full advantage of the record low rates still available.
The Reserve Bank has not much to say other than the economy is still moving along as they maintain an analytical eye over how things are progressing. Popular opinion is that if house prices do continue to increase in value considerably more than current economic growth, a rise in the cash rate will then be inevitable.
Real Estate agents are reporting good auction attendance amongst ongoing talk of under quoting in certain sectors. Having said this, more buyers are now turning up to auctions and OFI’s better
prepared with their own research and knowledge of comparable sales and median values in areas of interest, then bidding/buying accordingly.
As many agents say, they only need two people who are serious about buying a property; the price reached on the day all depends on who has the deepest pockets and how far they are prepared to go in the monetary sense to secure a property they truly want. And essentially, if you are serious about buying property at auction, then you have to be financially prepared and understand how far you can go – it’s the only way to bid with confidence and end up as the new homeowner!
Thinking of buying? Need to organise your pre-approval or need an appraisal of what you can borrow? Please feel free to give me a call on 0438 041 111 for a confidential discussion about your home loan.
As always, enjoy life, work hard, play safe and remember that we are always here to help you
‘Take the Confusion Out of Lending’
Peter Vinci - 0438 041 111