REIV: Spring market to warm with spring

Spring has sprung in Regional Victoria and that means that the auction market will heat up: the Real Estate Institute of Victoria (REIV) expects at least 850 auctions to take place this season.

Auction activity traditionally cools in winter, although Regional Victoria has fared better than Metropolitan Melbourne with clearance rates sitting at 69.6 per cent so far in 2018 compared with 65.7 per cent at the same time last year.

At this point in 2017, Regional Victoria had hosted 1,815 auctions with 1,193 sales under the hammer compared with 1,702 auctions and 1,184 sales in 2018. The sluggish market coupled with incentives for first homebuyers means spring will provide the best opportunity for purchasers to get into the market for years.

As more properties are listed and buyer interest intensifies over the coming weeks, the REIV expects the real estate markets in Kilmore, Kyneton, Jan Jac, Wallan and Ocean Grove to do particularly well.

So far in 2018, Belmont has recorded the most auctions in Regional Victoria: 96 with an impressive 88.3 per cent clearance rate. Next on the list is Highton with 76 auctions and a 67.1 per cent clearance rate, followed by Geelong West with 64 auctions and a 75 per cent clearance rate, Torquay hosted 60 auctions with a 83.3 per cent clearance rate and Newtown logged 56 auctions and a clearance rate of 73.2 per cent.

The top clearance rates (from a minimum of 15 auctions) in Regional Victoria were in Grovedale (27 auctions, 92.6 per cent), Belmont (94 auctions, 88.3 per cent), Ballarat Central (25 auctions, 88 per cent), East Geelong (24 auctions, 87.5 per cent) and Jan Jac (27 auctions, 85.2 per cent – the highest on record for the town).

The areas to watch this spring are Kilmore, Kyneton, Jan Juc, Wallan and Ocean Grove. Kilmore has already hosted 14 auctions resulting in 10 sales so far in 2018, with its median house price sitting at $440,000. Kyneton has surpassed its 2017 auction record with 12 sales already this year and its strongest clearance rate since 2015.

For further information on auction volumes and clearance rates, visit the website at reiv.com.au/market-insights.