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Buyers are calling the shots in Melbourne's home auction market

05 June 2018

Melbourne property buyers are getting an increasing amount of hand at our city’s auctions.

On the weekend Melbourne recorded an auction clearance rate of just 60 per cent from 740 homes that went under the hammer.

Buyers were cagey and showed a willingness to walk away or put in offers well below published quotes.

Greg Hocking from Greg Hocking Holdsworth discussed Melbourne’s increasingly fussy buyers with Domain.

“Buyers are becoming more critical and that is very evident,” he said.

“It has been going on for a few months now, and we seem to be on a glide path.”

“We had a couple of decent sales today, but there were a couple of others where prospective buyers just stood there and did nothing – it’s a mixed bag at the moment.”

Entry-level houses in the outer suburbs did well and when it came to the inner suburbs it was all about apartments under $700,000 which sold better than houses.

Real Estate Institute of Victoria’s Richard Simpson sellers were still trying to achieve prices they would have probably only got 12 months ago.

“Buyers are willing to walk away because there is no anxiety in the market anymore and no feeling that, ‘I’ve got to buy now because tomorrow the price will be higher’,” he told Domain.

“The buyers are not rushing to put their name on any contracts if they fear that a property might be overpriced.”

Resolving the issue of the stalemate between buyers and sellers will be a big issue for the Melbourne property market over the coming months.

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