Real Estate auction blog: Livestreams, rolling updates from Melbourne’s auction market
A Broadmeadows house has become the centre of a 10-party battle as first-home buyers swarmed its auction today, driving the home almost $100,000 past expectations. See what else is selling well.
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A Broadmeadows home has seen a decent level of attention from first-home buyers hoping to break into the property market with a young couple swapping their parents abode for their own home.
The family who were managing the deceased estate were thrilled with the result and happy for the new buyers.
There were more than 977 auctions scheduled this week, with mixed results for some of the more prominent sales including Kate Langbroek’s St Kilda homestead at 7 Burnett St - which passed in, as did a single-level townhouse in Cheltenham’s “Golden Triangle” at 32 Swinden Ave.
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The results, which are still expected to end with sales, show that buyers are in control as Victorian housing affordability notched a shock improvement after a year of nominally flat home prices, with higher than usual numbers of properties for sale.
It follows a tough week for owners, where Reserve Bank governor Michelle Bullock warned they were expecting some families would be forced to sell their home as the nation fights to reduce inflation. Last weekend Victoria’s clearance rate sat at 60 per cent, according to PropTrack.
The latest Real Estate Institute of Australia Housing Affordability Report showed most Australians are now spending a staggering 48.1 per cent of the median family’s income to pay an average home loan after a 1.3 percentage point increase.
The figure is the worst they have recorded since they began monitoring the statistic in 1996.
But in Victoria the figure was just 45.8 per cent, down from 46 per cent in 2023.
The report also found the state’s average loan size is $604,677 after a 1.6 per cent increase from $614,509.
REIA chief executive Leanne Pilkington said the report highlighted the impact interest rate increases and rising inflation have had on Australians in regards to both rent and home ownership.
The affordability improvement follows PropTrack data last week showing Melbourne currently has more homes for sale than at any time since 2018.
Separate figures released by SQM Research this week found the number of distressed listings in Victoria has skyrocketed by an alarming 26 per cent to more than 1000 over the past 12 months, pointing to escalating financial difficulties among homeowners.
Properties that have been listed for sale for more than 180 days have also recorded an uptick, increasing almost 10 per cent to 7692 in August.
This dual rise suggests a challenging market environment where some properties remain unsold for longer periods.
AUCTION REPLAYS AND RESULTS
21 JOHN BOYES DRIVE, BARANDUDA
A four-bedroom, two-bathroom home at 21 John Boyes Drive, Baranduda has passed in at auction with a bid of $1.7m, just shy of the lower end of its $1.73m – $1.9m price guide.
The home includes its own go-kart track and plenty of shed space for storage and is just 10-minutes from the Wodonga town centre, with good local schools and a new IGA.
First National Real Estate – Bonnici & Associates’s Lexley Sewell said there are a couple of buyers very interested but are subject to finance approval.
“The interest has been quite good for such a big price property and something of this calibre,” Ms Sewell said.
“Everything been incredibly busy, we have an enormous amount of listings but once they get over the $1m mark they take a bit longer to sell.
“Buyers agents are coming out of the woodwork but we’re finding on the New South Wales side rather than the Victorian side of the border.
45 JENKINS ST, MORDIALLOC
A three-bedroom house in the heart of Mordialloc has sold under the hammer for $1.55m considerably over the home’s $1m – $1.1m price guide.
Located 45 Jenkins St, Mordialloc, the home is overlooking the Epsom Grassland Reserve providing a tranquil backdrop for buyers.
The auction started with an opening bid of $1m with keen buyers consisting mainly of families putting their hand up to score this move in ready home.
Barry Plant Mordialloc’s Chloe Barry listed the home.
3 BETTINA CRT, CHELTENHAM
A fully-renovated home at 3 Bettina Crt, Cheltenham has passed in for $1.82m despite the home’s $1.5m – $1.65m price guide.
Luxury finishes span the home with plantation shutters, European oak engineered floorboards, and downlights – 2.7m ceilings were another highlight for buyers.
The home also includes a Google Home system that controls the lighting and surround sound system.
The property is listed by Ray White Oakleigh’s Leigh Kelepouris.
6/35 EVELINE ST, BRUNSWICK
A renovated 2-bedroom apartment in the heart of Brunswick has sold under the hammer for $630,000.
The auction at 6/35-37 Eveline Street, Brunswick garnered attention from two bidders with an opening bid of $600,000.
Ray White Oakleigh’s Leigh Kelepouris said the owners were from Northcotte and looking to move into Brunswick.
“With the older style units, first home buyers see value in them they’re typically larger than your high rise product,” Mr Kelepouris said.
“People want to feel like they own their own space rather than being part of a giant building and they’re an affordable way into the market.
“Older units and townhouses provide a bit more of a sense of home and they’re a great entry point.”
5 CATALINA AVE, ASHBURTON
A practically brand new four-bedroom, three-bathroom home at 5 Catalina Ave, Ashburton has sold under the hammer for $2.12m
Three bidders were active in the auction.
Ray White Ashburton’s Max Hedley said that the winning bidder of the brand new modern townhome was a local mother who was thrilled to be moving in the home with her children.
“The seller lives on the street, she owned the block and developed it; It was an owner-builder scenario,” Mr Hedley said.
“She was absolutely ecstatic with the result.”
Mr Hedley said that despite today’s exceptional result, he sensed the market is flattening in Melbourne.
“There are a lot of investors needing to sell at the moment, particularly with townhouses, which is flattening the market,” he said.
The auction was called by Ray White’s Leigh Petropoulos.
121 CUTHBERT ST, BROADMEADOWS
A Broadmeadows auction with 10 bidders has sold under the hammer for $711,000.
The four-bedroom, two-bathroom home at 121 Cuthbert Street, Broadmeadows had 70 groups through the property while on the market with lots of interested first home buyers.
Ray White Glenroy’s Arjun Chandaka said the final winning bidders of this original family home were a young couple who are currently living with their parents.
“The family managing the deceased estate sale were incredibly happy with the result,” Mr Chandaka said.
“The success of this campaign came down to a brilliant presentation of the home. The executors followed our advice very well to make sure the home was represented in its best light.”
Mr Chandaka said the large number of groups that came through the property highlighted the importance of vendor’s presentation when selling a home.
MELBOURNE’S CLEARANCE RATE HOLDS STEADY AT 60 PER CENT
PropTrack economist Anne Flaherty said while Melbourne’s property auction clearance rate holding steady at 60 per cent, the future remains uncertain.
“If conditions don’t improve concerning mortgages, interest rates, and the overall cost of living, we could see a further rise in distressed sales from vendors,” Ms Flaherty said.
The economist advised homeowners experiencing mortgage stress to shop around for the best interest rates and consider refinancing as a potential solution.
REIA Australasian auctioneer of the year Luke Banitsiotis said mortgage distress wasn’t presenting uniformly across the Melbourne market.
“On the whole, we aren’t seeing vendors absorb losses as severe as $100,000, there are some distressed sellers, but they are not widespread,” Mr Banitsiotis said.
“Most distressed sales involve ex-rentals, driven by increased taxes and the obligation to meet minimum property standards. The return on investment isn’t what it used to be.”
However, the Woodards Real Estate agent also pointed out the scarcity of family homes on the market, which makes them particularly sought-after when they become available.
Prominent buyers advocate Cate Bakos added that investors frustrated with limited control over their assets were a significant component in the elevated sales numbers.
“While many homeowners have acclimatised to the stress of mortgage repayments, the rate at which they are feeling the pressure and deciding to sell hasn’t accelerated dramatically,” Ms Bakos said.
As a result, she said agents had been having “challenging conversations” with vendors to adjust pricing for most of the past year, but this was now happening less as the tough conditions were now better understood.
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