This is what’s happening in the residential sales market

Things are looking up. After many months of a ho-hum market, the last weekend of September saw the highest auction clearance rate in two years. Australian Property Monitors reported a 67 per cent clearance rate, well up on the 57.5 per cent reported for the same weekend last year. This follows a relatively strong winter market, during which auction rates averaged around 60 per cent (up 5 per cent on last year).

Several factors are contributing to these improved results.

First, buyer interest has increased. We’re seeing this in higher enquiry levels for all properties on our books.  However, while the buyers are there, they’re not yet madly waving their cheque books.

Second, many vendors who have been holding out for higher prices, have decided to take the price on offer and sell. Consequently, stock has been cleared out and there is reduced supply.

Third, there is a general feeling that the market has bottomed and will start to edge up.

Auction rooms can still be tough places, and many of the best results are being achieved prior to auction.  However, more excellent results are shining through. We recently enjoyed two fantastic results in Birriga Road, Bellevue Hill, in just two weeks.   First up was 12/94 Birriga Road, a two bedroom art deco apartment. It sold at auction on 21 August for the great price of $585,000. Next was 4/6-8 Birriga Road, an enormous and stunningly designed one bedroom apartment. This unique property sold under the hammer on 4 September for the spectacular price of $881,000. We had been quoting mid-to-high $700s during the campaign, so this result was well above all expectations. It would have to be one of the highest, if not the highest, price achieved for a one bedroom apartment without a view in Bellevue Hill.

Whilst higher stock levels in October will test the market, we expect it to remain steady or strengthen for the remainder of 2012, setting us up for a strong 2013.

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