Spring’s Run Into the Finals
Spring’s Run Into the Finals
Spring energy in the market has resulted in a record number of auctions across Melbourne as the first ‘Super Saturday’ for the season was held. Relatively higher numbers of auctions are typically conducted over the third weekend in September as next week there will an auction-bye due to the Grand Finals. Compton Green was kicking goals as we sold 56 Russell Place in Williamstown for $920,000, 7 Ford Street, Newport – $715,000 and 57 Gamon Street, Seddon – $702,500.
Where is the strong demand coming from? In our opinion it is coming right across the board from a range of demographics and price points. House prices have risen sharply in the past year and all of the signs are pointing towards an extremely busy second half of 2014. We are seeing a healthy number of multiple bidders and sometimes even large groups who are competitively vying for properties. Low mortgage rates are also encouraging investors to enter the market as they continue to recognise the future capital gain.
Real Estate Institute of Victoria CEO, Enzo Raimondo explained his opinion of the Western Suburbs property scene at Compton Green’s annual State of the Market Information Evening recently. “Properties are selling faster than this time last year because there’s definitely more demand. Prices continue to peak because of the high level of competition and days on market continue to be reducing,” he said.
So where to from here? Economists predict that rates will rise 2% or so sometime in late 2015 or early 2016.While statistics highlights how prices are likely to continue trending upwards. According to RP Data’s August CoreLogic Hedonic Home Value Index, capital city dwelling values moved 4.2% higher over the three months to the end of August, the strongest capital gain over the three months of winter since 2007. Sydney was the standout performer over the last year (+16.2%), while Melbourne was the best performing market over the last three winter months (+6.4% for the quarter and 11.7% for the year).
Compton Green’s Director and Auctioneer, Adrian Butera explained his view of the property climate. “Considering the excessive number of auction bookings which continue to be building up, Spring is in its traditional selling glory. The Inner West continues to be a population hotspot due to the lifestyle pleasures and rewards of capital growth,” he said.
Flowers fell like pre-celebratory confetti at 57 Gamon Street, Seddon which sold after auction.
