Property auctions report 60 percent clearance
As the year draws in to a close, property auctions are still steady despite more properties being offered for sale.
There were 1,005 auctions generated during the weekend with a clearance of 60 percent for the fifth week in a row. According to RP Data-Rismark data, Melbourne property rates jumped by 0.6 percent in October.
Interest rate rises are the main issue, Ethem Demir from Melbourne Estate Agents told The Sydney Morning Heards, saying that prices had decreased by around 5 percent in his area. Despite the drop in prices, the rates are still considered high for first home buyers Agents say there is still substantial price growth.
Well-located properties located though will always interest potential buyers. It's been observed that buyers were willing to pay more for better quality properties especially those located in the inner suburbs. One example is a 15-year-old Richmond townhouse property that attracted six bidders during the auction. Buyer advocate Michael Ramsay said the property opened at US$640,000 but wasn't on the market until US$800,000, despite being quoted between US$680,000 and US$720,000 until it was eventually sold for US$825,000. ''I think people are tired of looking around, so they will exceed their budget by a reasonable amount to make sure they can secure a property,'' Ramsay said.