Clearance rates spike

Victorian auction clearance rates have been at their highest levels in months in recent weeks, suggesting confidence in the property market is picking up.

A clearance rate represents the percentage of properties that sell under the hammer compared with the total number listed for auction.

For example, if 10 homes are listed for auction in Bendigo and six sell, then the clearance rate would be 60 per cent.

Victoria recorded an auction clearance rate of 55 per cent during March 2019 which was an improvement on lower rates at the end of last year – October (53 per cent), November (50 per cent) and December (46 per cent).

Shepparton is leading the charge for Regional Victoria, achieving an impressive 90 per cent clearance rate so far in 2019, selling nine out of 10 auction listings under the hammer.

Wangaratta also sold its only auction listing for 2019, giving it a 100 per cent clearance rate.

Mildura’s nine successful auction sales has led to a clearance rate of 75 per cent. Two properties have sold under the hammer in Ballarat Central, contributing to a 66.7 per cent clearance rate and Warrnambool has recorded a 66.7 per cent clearance rate with six auction sales.

Geelong has clocked up three auction sales during the first few months of the year, giving the city a clearance rate of 60 per cent.

Volume-wise, the most auctions have been held in Torquay (32), Highton (20), Belmont (19), Geelong West (17) and Newtown (17) in 2019.

The most expensive property to sell via auction was a four-bedroom home in Wallington that changed hands for $1.4 million, followed by a three-bedroom home in Geelong West that fetched $1.35 million and a four-bedroom house close to the beach in Torquay that sold for $1.27 million.

At the other end of the spectrum, there were three auction sales of less than $100,000 in regional Victoria so far this year. A one-bedroom caravan cabin sold for just $34,100 in Mildura, a three-bedroom house sold in Kerang for $67,000 and another three-bedroom house in Tarnagulla fetched $92,500.

For the latest property information in your area, visit the Market Insights page of the REIV website.