The preliminary success rate for the Melbourne auction was 53 per cent, but buyers may not get the full picture of the market on auction day.
The city’s data could change dramatically on Saturday morning as more sold and unsold results are reported in the following days.
Last weekend’s preliminary disclosure rate of 55.8 percent later dropped to 48 percent after additional results were received.
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PropTrack recorded 150 sales from 283 results recorded this weekend, with 579 homes set to go under the hammer in Melbourne.
Whether the latest figure will follow a similar path will become clearer by Wednesday, when standout results are added and negotiations continue following auctions.
Ray White national chief executive Thomas McGlynn said buyers had not disappeared, but the widening gap between what they were willing to pay and what sellers expected was holding sales back.
Ray White national chief executive Thomas McGlynn said buyers had not disappeared, but the widening gap between what they were willing to pay and what sellers expected was holding sales back.
“The problem is that there is a gap between what buyers think they want to pay and what sellers are willing to accept,” Mr McGlynn said.
“Our average number of active bidders has dropped from just two to 1.8 over the past three months, so buyers are still participating in the market.
“Auctions still outperform private treaty because the buyers are there, but they are just becoming more disciplined.”
Mr McGlynn said intense inspections and large crowds at auctions did not always result in sales as agents were forced to continue negotiations after the property was listed.
“This is where experienced agents really make their living,” he said.
“They need to have an honest conversation with sellers about where the market is and help bridge that gap between buyer and seller.
“It’s not that people have stopped looking for housing. They’ve just become much more selective about how much they pay.”
Real Estate Institute of Victoria chief executive Toby Balazs did not support suggestions agents were deliberately hiding poor results, but said looser conditions had made realistic pricing increasingly important.
“We’re certainly seeing buyers taking more time to make decisions and sellers having to be realistic about market conditions,” Mr. Balazs said.
“Market fundamentals are still good, but campaigns are becoming more complex and expectations must be adjusted accordingly.
“Right-priced properties continue to attract strong interest, but buyers have become more disciplined and are willing to walk away if they feel a property is overpriced.”
Despite the weaker market, outstanding homes continued to attract stiff competition.
Cheltenham director Trevor Bowen said the unrenovated two-bedroom townhouse at 36A Wellingford St, Cheltenham attracted 131 spectators, six bidders and 27 bids before selling for $1.0075 million.
The deceased estate was originally advertised with a guide price of $780,000-$850,000 before the reserve was set at $820,000.
The starting price of $850,000 immediately put the house on the market.
“The house was bid on by first-home buyers and a couple of downsizing companies,” Mr Bowen said.
“I think it depends on what pockets you look into and buy. Cheltenham’s Golden Triangle has always performed well, even in challenging markets.
“Homes with a good location and a good price will sell.”
Mr Bowen said the single-level layout had helped attract buyers looking to downsize, and the price appealed to first home buyers.
“The first bid put it up for sale, so it’s impossible to be more transparent and fair,” he said.
The biggest auction sale of the weekend was a three-bedroom house at 155 Park St, Moonee Ponds, which sold to Jellis Craig Kensington for $1.92 million.
A five-bedroom house at 8 Nolan Cl, Doncaster East, sold for $1.71 million, followed by a house at 24 Yale Ave, Keysborough, for $1.67 million.
Other notable results include 21 Stanley Gve, Blackburn, for $1.62 million and 58 Park Rd, Surrey Hills, for $1.59 million.
A further 743 homes are set to go under the hammer in Melbourne next weekend, also down about 10 per cent on the same period last year.
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Originally published as ‘The hidden history’ of Melbourne auction sales figures.
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