Rate rise adds fresh caution

Ray White data shows the national clearance rate was 41.1 per cent this week, down from 43.1 per cent last week and 75.2 per cent at the same time last year. There were 657 auctions scheduled nationally across Ray White. But it was a quieter Saturday overall with only 273 auctions booked across Ray White's network today, largely due to the end of school holidays and long weekends in many states.

Ray White CEO of Performance and Value Thomas McGlynn said there was an interesting gap opening up in the market.

"We know there are buyers who want to buy. More than 28,000 people came through our open homes this week and average active bidders increased from 1.7 to 2.3, while national clearance was 41.1 per cent. At the same time, the number of properties available for sale remains healthy," Mr McGlynn said.

"So there are people on both sides who want to transact; they're just not always meeting on price. Buyers are engaged and prepared to compete, but many are also prepared to hold their position when they don't see the value."

Ray White Chief Economist Nerida Conisbee said the RBA's 0.25 percentage point increase would add to the downturn already underway in the established housing market.

"A cash rate of 4.60 per cent will further reduce borrowing capacity and increase repayment pressure, while rising unemployment is likely to add another layer of caution for buyers," Ms Conisbee said.

She said further rises were not inevitable. "If unemployment continues to rise and employment conditions weaken further, the case for additional tightening will become much harder to make," Ms Conisbee said. 

Mr McGlynn said sellers should not view the current conditions negatively.

"There is clearly an opportunity to sell in this market," Mr McGlynn said.

"What it does mean is that the first few weeks of a campaign really matter. When buyers have choice, you want to come to market well prepared, with the presentation, marketing and price all working together from the beginning.

"We often talk about the importance of generating competition between buyers, but in the current market there is also competition between properties for the attention of those buyers, and that makes getting those early decisions right increasingly important."

Nationally, 69 per cent of auctions have sold within 45 days, up from 66 per cent last week. Over the same period, 44 per cent of private treaty listings have sold.

"The other number I keep coming back to is what happens after auction day," Mr McGlynn said. "While 41.1 per cent cleared on the day this week, our clearance at 45 days is sitting at 69 per cent.

"That tells me there is still a lot happening after the headline result is recorded, as buyers and sellers continue conversations and ultimately find a level where they are both comfortable to transact.

"Markets like this require some patience and a willingness to listen to what is happening in front of you, because the buyers are there and the opportunity is there."

The top sale of the day was in sunny Brisbane where 137 Fifth Ave, Windsor changed hands for $3.7 million with 2 active bidders. Ray White Wilston auction pro Alistair Macmillan set a new benchmark for a 405sqm block in the area.

And the highest registered bidders was in Melbourne where five registered bidders turned up to vying for 12 Ryan St, Brunswick East which Ray White Brunswick principal Jamil Allouche sold under the hammer for $1,220,000 for his sellers.

Victoria

Ray White Victoria Chief Auctioneer Luke Banitsiotis said over the past seven days, the auction day clearance rate held steady at 51 per cent, with a closer look at our 45-day metrics revealing a distinct split between sale methods.

"Private treaty clearance dropped 11 points on the week prior to sit at 41 per cent, whereas auction performance remained remarkably resilient, holding firm at a strong 74 per cent. Engagement at auctions also saw solid buyer participation, averaging 2.3 registered bidders and 1.5 active bidders this week, a lift in registrations from 2.1 last week and closely tracking our one-month averages of 2.2 registered and 1.7 active bidders." he said.

"This underlying market momentum was on full display in Hillside today, where buyer demand delivered standout results. The team at Ray White West Realty - Caroline Springs achieved a clean sweep, selling three from three under the hammer with 10 registered bidders competing across the properties. This impressive outcome highlights the genuine depth of active buyers remaining in the market and reinforces the undeniable strength of the auction process across this region."

25 The Circuit, Gladstone Park 

• Sold under the hammer for $801,000
• Published reserve $700,000
• 3 registered bidders and 5 active bidders
• Lead agent/auctioneer: Phillip Mercieca - 0402 419 827
• Ray White Gladstone Park

A Gladstone Park investment property sold for $101,000 above its published reserve this morning. Three registered bidders and five active bidders competed for the three-bedroom home despite the rain. 

The house at 25 The Circuit sold under the hammer for $801,000, well above its $700,000 reserve and its $670,000 to $700,000 price guide. A large crowd sheltered from the rain to watch the auction.

The buyers are second-home buyers who had been missing out on properties for about nine months, often finishing as underbidders.

Ray White Gladstone Park principal and auctioneer Phillip Mercieca said it was one of the most exciting auctions of his career.

"I have been in real estate for 20 years and I cannot believe what an exciting auction that was," Mr Mercieca said.

He said about 70 buyers came through during the campaign, and the low number of listings in the area helped drive competition. "It was a good result for the vendors," he said.

Retired couple Graeme and Linda bought the home 14 years ago. Their daughter rented it for the first five years, and since then it has been an investment property.

When their tenants moved out, the couple saw a chance to sell. They had the house painted inside and out and brought in a stylist, which drew plenty of comments from buyers.

They chose to move the auction date forward instead of waiting, reasoning that with so few properties on the market, holding off another week risked losing interested buyers.

"They were hesitant to go to auction at first, but they cannot believe the price," Mr Mercieca said.

The couple live in the next suburb over.

"It was all happening here! We had an earthquake overnight and then there was torrential rain during the auction. We have a large sheltered carport, so we held it there out of the rain. I was stressed over the auction and finally got to sleep but woke around 3am," Graeme  said. 

"We're delighted it sold so well. The result was good and with a 30-day settlement. We are delighted with Phillip, he’s so professional and his strategy to bring it forward was a great idea."

16 Eucalypt Avenue, Malvern East

• Sold under the hammer for $1,261,000
• 3 registered bidders, 2 active bidders
• Lead agent: Adam Pavlou - 0455 096 229
• Ray White Ashburton

A crowd of about 80 people stood in the rain to watch a Malvern East townhouse sell under the hammer for $1,261,000 this morning. The two bidders fought it out in $500 increments.

The three-bedroom townhouse at 16 Eucalypt Avenue sold $61,000 above the top of its $1.1 million to $1.2 million price guide. Three bidders registered and two were active.

Bidding opened at $1.1 million and the property was declared on the market at $1.18 million. After a few larger rises, the two remaining bidders traded $500 bids non-stop until the hammer fell.

The buyer is an air hostess who has been renting in neighbouring Glen Iris. The sellers are moving to rural Victoria.

Ray White Ashburton's Adam Pavlou was the lead agent for the campaign.

48 Stamford Crescent, Rowville 

• Sold under the hammer for $850,000
• 2 registered bidders and one active bidder
• Advertised price $780,000 to $850,000
• Lead agent: Sam Sassoon - 0487 610 018
• Ray White Ferntree Gully
• Auctioneer: Fabian Sanelli, Ray White

A torrential thunderstorm did nothing to dampen the result for three sisters who sold their late parents' Rowville home of 28 years under the hammer for $850,000 this morning.

The three-bedroom house at 48 Stamford Crescent sold at the top of its $780,000 to $850,000 price guide to a first-home buyer moving from Glen Iris. About 10 to 15 onlookers stood in the pouring rain to watch.

Bidding opened at $780,000 and the property was declared on the market at $850,000, where Fabian Sanelli of Ray White brought the hammer down. Two bidders registered, with one active on the day.

For sisters Raelene, Tracey and Christine, the sale closes a hard chapter. Their mother died 18 months ago at 85, and their father died in April this year at 92, just 11 months later. Settlement will fall on their mum's birthday.

The sisters said emptying the house took a long time.

"Our dad became a hoarder and he kept everything, even random sewing kits with half of the kit missing, and stuff from when we were kids," Raelene said. "He was pretty fit and independent, and he would tell anyone who listened that he had the best three daughters in the world.

"Dad had a big garage full of every man toy and power tool you could imagine."

Ray White Ferntree Gully agent Sam Sassoon had known their father for years. He dropped in on him regularly and did several appraisals of the property over time.

"We were so lucky that we had Sam, and Dad would have been so happy that Sam sold the house," she said. "He used to drop in on Dad. We loved that he listened to Dad.

"I said I wasn't confident about going to auction, but Sam assured us it was the way to go. Sam's guidance is what led us to where we are today."

Two of the sisters had worked in real estate during their careers. They said they were impressed by Mr Sassoon's professionalism and the technology behind the campaign.

"He ticked all the boxes," Raelene said.

Mr Sassoon, who has been in real estate for five years, said the campaign drew 35 groups over three weeks.

The home sits on a 737sqm block. It has a two-tiered rear deck, a built-in living room bar, and a double carport plus a separate garage with a workbench. It is within walking distance of Rowville Primary School, Rowville Secondary College and Stud Park Shopping Centre.

42 Ellis Park Ave Mulgave

• Sold under the hammer for $835,000
• Reserve was $795,000
• 7 registered bidders, 4 active bidders
• Lead agent: Rick Cheah - 0434 085 265
• Ray White Judd White 
• Auctioneer: Dexter Prack, Ray White

In front of a big crowd, a young couple searching for their first home today bought a Mulgrave townhouse under the hammer for $835,000. They outbid three other active bidders for the property on a rainy Saturday in Melbourne..

The three-bedroom townhouse at 42 Ellis Park Avenue sold after seven bidders registered for the auction, and all of them were local.

Bidding opened at $760,000. Ray White auctioneer Dexter Prack declared the property on the market at $810,000, and bidding continued another $25,000 before the hammer fell.

Mr Prack said the result was a great outcome for the investor sellers. He said the Waverley Park Estate was a popular area and the home was very well presented.

He said a very similar property sold three months ago for $795,000, which put this result $40,000 ahead. Ray White Judd White Group's Rick Cheah was the lead agent for the campaign.

91 Orchard Street, Glen Waverley

Sold under the hammer for $3,301,000
4 registered bidders and 3 active bidders
Lead agent: Nuria Jewell - 0450 000 898
Ray White Judd White 
Auctioneer: Dexter Prack, Ray White 

$1000 bid seals $3.3m Glen Waverley sale as Darwin buyer waits in the wings

A single $1000 bid was enough to win a brand-new French Provincial home in Glen Waverley this afternoon. The house sold under the hammer for $3,301,000 in front of a crowd of more than 100 people.

Four bidders registered for the auction at 91 Orchard Street, and three were active. All of them were local.

Ray White auctioneer Dexter Prack called the five-bedroom home on the market at $3.2 million. That was the moment the eventual underbidder joined in. He had held back until then and pushed the price to $3.3 million, before the winning bidder added $1000 to secure the home.

There was also a buyer in reserve. A bidder in Darwin was waiting on the phone, ready to make an offer straight away if the property passed in.

The result capped a strong day for Mr Prack, who had sold six of his seven auctions by mid-afternoon.

Ray White Judd White Group's Nuria Jewell was the lead agent for the campaign.

Queensland

A mother of three who watched a brand-new Happy Haus home being built 100 metres from her front door has bought it under the hammer today for $3.7 million, setting a new benchmark for a 405sqm block in the area.

The five-bedroom, four-bathroom residence at 137 Fifth Avenue, Windsor sold at auction this morning, with three registered bidders and two active on the day. Phil Parker of Ray White called the auction.

Ray White Wilston lead sales agent Alistair Macmillan said the result was $500,000 above the previous record for a block of that size in Windsor.

But the buyer's interest began long before the campaign launched. She lives in a townhouse just up the road and had followed the build from the beginning.

"She's a mum with three kids who watched the house get built," Mr Macmillan said.

"She went to France just before the campaign started, and she had all her family go through it while she was away. She made us promise not to sell it until she got home. She only got back on Monday, and she loved the house."

The home was built by Happy Haus, the award-winning architect and building practice as a display home to showcase its work to clients.

"The home was built by a good high-end architectural building company as a display home to show their clients the level of their work," Mr Macmillan said. "They are happy the house has sold."

Set on an elevated corner block about 750m from Wilston Village and less than 5km from the CBD, the two-level home features a custom Italian marble and oak kitchen with butler's pantry, an internal garden courtyard, a main suite with spa ensuite, two walk-in robes and balcony, a rumpus room, study, and a resort-style pool with outdoor barbecue kitchen. It also includes 10kW solar with battery, EV provision and smart home technology.

137 Fifth Ave, Windsor

• Sold under the hammer for $3.7 million
• 3 registered bidders, 2 active bidders
• Lead agent: Alistair Macmillan - 0410 636 221
• Ray White Wilston
• Auctioneer: Phil Parker, Ray White

11 Hawthorn Tce, Red Hill

• Sold under the hammer for $2.96 million
• 4 registered bidders, 3 active bidders
• Lead agent: Max Hadgelias - 0411 276 372
• Ray White Paddington

Mr Hadgelias said sellers are relocating interstate to be closer to family. “And the buyers (pictured) are local and happy to be moving into a bigger house and upsizing.” There were around 50+ groups of buyers who inspected the property during its campaign.

South Australia

Ray White South Australia chief auctioneer John Morris said there was no question that the market has changed, and is continuing to change, and we are seeing that reflected in clearance rates which have continued to decline over recent weeks. 

"But here's the important part. Properties listed for auction are still selling at a higher rate and in a quicker time frame than those listed by other methods," Mr Morris said. 


"Throughout September, we sold around one in every two homes under the hammer. And while that headline number is important, what happens in the weeks following auction tells a bigger story? When there is frequent communication between the agents, the sellers, and the buyers throughout an auction campaign, an incredible 98% of those properties are sold within 45 days. 
Compare that with private treaty, with the same level of communication, only 79 per cent are sold within that same 45 day period. A 19 percentage point difference. 

"In a market where conditions appear to be softening, those extra days on market matter. 
The longer a property sits, the greater the risk that buyers start questioning why it hasn't sold. We lose momentum and sellers find themselves chasing the market rather than staying ahead of it. 

"So while auction day clearance rates may not be at a level we've become used to, the data continues to tell us that auction isn't just about what happens under the hammer - it's about creating competition, maintaining communication, and giving sellers the best opportunity to get their property sold sooner rather than later. 

"In a changing market time matters, and so does the method, and it is proven time and time again that auction works better than all other methods of sale."

55 Trimmer Parade, Findon

• Sold under the hammer for $610,000
• 1 registered and active bidder
• Lead agent: Savvas Eftimou - 0414 263 428
• Ray White Grange

Western Australia

70 Edeline Street Spearwood 

• Sold under the hammer for $1,502,000
• 8 registered bidders, 3 active bidders
• Lead agent: Ana Vizcaino - 0416 197 012 
• Auctioneer: Michael Harries