Weekly Market Update - 22nd August 2019
By | 22nd Aug 19

Melbourne continues its solid performance with a 79% clearance rate from 441 auctions. This is a massive improvement from last year's clearance rate which was only 40%; nearly a 100% improvement in a very short eight month period of time. There was some runaway results again and the strongest result was for a single fronted terrace in Armadale. A buyer tried a "knock out bid" unsuccessfully, smashing the $1,250,000 reserve and it sold for $1,510,000  knocking out ten bidders with this strategy.

The property didn’t tick all the boxes as it had no off street parking. Though the market is so strong now and supply is down by 30 – 40%, so buyers are having to choose properties that don’t have all the bells and whistles. The biggest change in the market is due to investors coming back recently.

Many investors are now competing at auctions and returning as they always do when the market improves. Owner occupiers are now going to have to push themselves harder than they have in the last two months where it was easier with investor numbers dropping from 50% down to 20%. Owner occupiers have got to face increased competition.