The spring selling season has brought with it increased supply levels, finally.

Melbourne is finally starting to see a boost in auction numbers for the spring selling season, which appears to have started late this year due to growing concerns about the health of the economy and property market.

There were 626 auctions scheduled around the city on 17th September, which is the highest supply level seen for a Saturday in months but still comparatively low for this time of year.

The number of properties that have gone up for auction in September is down 16 per cent compared with the past two years, but about on par with the stock level seen during the 2008 global financial crisis.

Yesterday, the auction clearance rate was 57 per cent for the 540 results reported to the Real Estate Institute of Victoria. The outcomes of another 86 sales are still unknown.

With such a significant proportion of properties still passing in at auction, the consensus seems to be that it is vendors with quality properties or those willing to meet market expectations – either when setting a reserve or during after-auction negotiations – who stand a good chance of a successful outcome at the coalface.

Take the example of 47 Armstrong Street in Middle Park, a three-bedroom Edwardian that was quoted during the sales campaign at $1.4 to $1.5 million. But when it was clear that interest was at a lower level, the owners chose to set a more modest reserve.

”The feedback was below what we were chasing. The vendors were very motivated to sell, and that’s why they set a lower reserve on the day because that’s where the market was indicating its true value,” said Karl Gillon, managing director of Buxton Albert Park.

The property, which attracted a crowd of more than 150 people and four active bidders, was declared on the market at $1.3 million and sold for $1,345,000.

In Cremorne, more than 100 people gathered for the auction of 56 Chestnut Street, with six bidders emerging from the pack to bid on the three-bedroom townhouse. An opening genuine offer of $810,000 kicked off the frenzied competition that did not end for another hundred bids.

Declared on the market at $910,000, the hammer did not fall until $1,021,000. Biggin & Scott Richmond had quoted it at $800,000-plus.

Two bidders could not get 40 Balwyn Road in Canterbury over the line, with the six-bedroom house passing in at $2.9 million. Jellis Craig declined to comment, but sources say the property later sold for just over $3 million.

Source: Domain

From: The Adviser 30/6/10

Spring no longer represents the best time to sell, according to RP Data.

New research from RP Data has found evidence to suggest that a great number of listings does not necessarily convert into a great number of sales.

RP Data’s research analyst Cameron Kusher found that, on a national basis, March is in fact the busiest month for house and unit sales.

Nationally over the last 10 years, March accounted for circa 9.3 per cent of all dwelling transactions.

“Despite the fact that March is the busiest month for sales, the results show that there is minimal fluctuation in sales activity except within December and January when sales volumes fall away considerably,” Mr Kusher said.

“Clearly once everything starts to settle down after year-end festive periods, the attention turns back to the property market resulting in strong sales volumes during March.”

According to Mr Kusher, May is the second busiest month for sales, accounting for almost 9.2 per cent of all transactions.

The results also confirm that spring is only the second busiest season for purchasers with autumn attracting 26.6 per cent of all sales compared to: 25.4 per cent in spring, 25.3 per cent in winter and 22.7 per cent during summer.

Mr Kusher said that although there is a ramping up in listings from August through to November, the increase in listings is not matched in sales activity. The strongest increase in sales activity is recorded between January and March each year at which time listings also ramp up.