Victorian auction popularity increases during 2013

By the resi financial blog team, 04 September 2013

Auctions popular in VIC property market

Anyone considering purchasing a home in Victoria should acquaint themselves with the intricacies of buying at auction, as the Real Estate Institute of Victoria has highlighted that auctions are becoming increasingly popular throughout the state for selling property.

Winter usually sees a slowing of the property market, and with an election coming up, there was an expectation of an apprehensive market. However, this has not been the case in 2013, with consumer confidence continuing to rise regardless.

And with the best fixed interest rates for home loans we’ve seen since the 1950’s, now could be the perfect time to ramp up your search in Victoria.

The number of vendors selling their properties through auction has increased by 13 per cent over last year, reaching over 17,000 sales for the year to date.

Furthermore, the clearance rate for the year so far has reached 70 per cent - an improvement over the 60 per cent rate seen last year, and the 61 per cent rate witnessed in 2011.

While 2011 had more auction listings, there have been more house sales and a higher clearance rate for 2013, with 12,000 homes sold thus far in 2013 compared to 11,100 for the same period in 2011.

Furthermore, the total value of transactions has increased during 2013, growing by 44 per cent over last year. So far this year, the total value of auction sales has reached $8.2 billion, compared to last year's $5.7 billion, or the $7.2 billion recorded in 2011.

Private home sales have also increased this year, with over 32,700 home sales made so far during 2013. This is a six per cent increase over the same period last year.

With the rate home auctions are going, there is an expectation that they will exceed last year's share of the market, which sat at 23 per cent.

Categories: Home Loans, Personal Finance