Rain, an interest rate rise and even a looming federal election couldn’t slow Victoria’s auction market yesterday.
Home prices soared up to $500,000 beyond their reserves in what will potentially become the state’s busiest May week for homes going under the hammer on record.
Realestate.com.au auction data shows Victoria recorded an 84 per cent preliminary clearance rate from 390 reported results.
Real Estate Institute of Victoria figures showed a whopping 1420 homes were scheduled to test the market before the end of Sunday as sellers try to beat the polls.
While that’s enough to trounce the 1287 record reported for the week ending on May 9 last year, vendors withdrawing homes from the auction market could drag this week’s numbers down by as much as 200 by the time figures are finalised midway through next week.
But for the sellers who pushed on, big results were on the cards yesterday.
Victoria’s recently crowned top real estate agent Sam Rigopoulos sold a Northcote home a jaw-dropping $502,000 above its reserve.
The Jellis Craig Northcote director put the unusual architectural design with a slightly wonky-looking facade at 11 Thames St under the hammer with a $3.8m reserve.
But with four bidders pursuing the home, the hammer didn’t come down until $4.302m.
“That’s an amazing reflection of the top end of the Northcote market,” Mr Rigopoulos said.
He added that another family home he sold in the suburb yesterday at 18 Yeomans St had topped its reserve by $300,000 in a $3.2m deal.
REIV president Richard Simpson said there had been “good numbers at opens and auctions” despite a rainy day.
“And clearly some buyers are cashed up and keen to go,” Mr Simpson said.
“But some were saying they will be waiting to see what interest rates will do — which I didn’t hear last weekend.”
Despite this he said the market still appeared in good balance, something he expected would continue in the near future as vendors “meet the market” and buyers looked to grab properties that suited their needs ahead of a traditional winter property market lull.
While auction numbers are expected to be just over half this weeks numbers when Australia goes to the polls next Saturday, Mr Simpson said he was expecting property to get a vote of confidence as people were out and about.
“They might go and vote in the morning and buy a property in the afternoon,” he said.
The week after the election is expected to cement a new May auction record, with 1560 auctions slated between May 23 and May 29.
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