It's a bargain hunters' market as house sales plumment
Nicola Webber From: Herald Sun May 21, 2011 12:00AM 3 comments
BARGAIN-hunting home buyers face a bumper two weeks, with 1665 properties going under the hammer.
Auction clearance rates are at lows not seen since the global financial crisis, with vendors shaving prices to get sales.
And Clayton is emerging as a best-buy suburb, with only one in three houses selling at auction.
Real Estate Institute of Victoria spokesman Robert Larocca said a month of Melbourne auction clearance rates below 60 per cent and a lot of properties for sale meant this was likely to be the best two weeks for buyers in a couple of years.
He said last weekend's clearance rate of 53 per cent was Melbourne's lowest since November 2008.
"Many auctions are being negotiated in the kitchen afterwards," he said.
But people remain keen to use the auction system, with 780 properties under the hammer this weekend and 885 next weekend.
Related Coverage Clearance rates just 48.4% The Daily Telegraph, 9 hours ago Private house sales tipped to rise Herald Sun, 17 Apr 2011 Busiest pre-Easter on auctions Herald Sun, 8 Apr 2011 Fewer auctions lift clearance rates Herald Sun, 18 Dec 2010 Rate rise keeps home buyers timid Herald Sun, 5 Dec 2010
Mr Larocca said Clayton had a clearance rate of only 36.4 per cent, making it good for bargain hunters.
"They are likely to face less competition and have a better opportunity for snapping up a bargain," he said.
Century 21 Wilson Pride Clayton director Con Katos said $500,000 could buy a property with enough room to build a separate unit.
He said proximity to Monash Medical Centre and Monash University made Clayton popular with property investors.
"Although the auction clearance rate is low, there are a lot of properties selling afterwards," he said.
Meanwhile, a new RP Data report reveals Melbourne sellers are dropping their prices an average 6.5 per cent to find a buyer.
This means a property advertised for $500,000 could be discounted $32,500.
"For potential buyers, the news is much more positive because buyers now hold the power and can really begin to negotiate and pick up a property at a reduced price," RP Data's Cameron Kusher said.
