‘Auction frenzy’ fuelling Vic property market
The number of homes going under the hammer in the Victorian property market has only added to rising demand, with more investors looking to nab their piece of the pie.
According to Ray White Victoria and Tasmania chief auctioneer Matthew Condon, the past week has seen “another outstanding” outcome for homes falling under auction.
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“We are seeing an increased amount of average registered bidders at auction and most noticeable has been the competitive bidding coming from buyers,” Mr Condon said.
"They are bidding aggressively and in high increments, not $1000 back and forth bids, they are coming out with massive bids.
“Sellers who are choosing to sell in the current market are being rewarded with above reserve prices.”
Ray White has come on record as saying its listed more properties in February than the same time in the last two years, with the group noting it’s clear that “low stock levels are no longer the catalyst for the current intense buyer demand”.
“Following a year of reduced activity in the market, pent-up demand and fear of missing out (FOMO) has created a perfect storm that continues to build momentum in the market,” a statement from Ray White said.
“With so much competition out there, according to Ray White data, those listings that make it to game day in February sold far more than the highest offer prior. Those vendors who held out not only saw higher returns on their property but also benefited from the unconditional sale transparency that an auction brings.”
Commenting further, Ray White managing director Dan White said, “The most important message that can be communicated to vendors was the value being created by taking properties all the way through to auction day rather than selling before auction.”
“In a month in which 43 per cent of all our sales were made via the auction method, our data shows that our clients achieved prices 12 per cent more on average under the hammer than by accepting the highest offer prior,” he explained.
