Melbourne property sellers appear to be testing the waters and waiting to see where the market goes next after agents and auctioneers reported reduced stock levels this weekend.
The preliminary auction clearance rate last weekend sat in the high 60s and Domain economist Trent Wiltshire says it’s a sign the market is buoyant.
“Clearance rates over recent weeks are now at the highest point in over a year, so activity has definitely picked up,” he told Domain.
“I would also note that the number of auctions is about 30 per cent lower than this time last year, so the market isn’t being tested that much yet with lots of new supply.”
“There’s more buyer interest and activity, with lower interest rates a key driver and if clearance rates do stay at about 60-65 per cent, it’s likely we’ll see prices bottom-out later this year.”
Michael Armstrong is from Kay & Burton in South Yarra and told Domain property sellers were watching the market before diving in.
“People are still being very measured,” he said.
“It’s all about getting their timing right.”
While sellers were remaining watchful, Mr Armstrong said it was buyers who were on the increase.
With the increased buyer interest and auction attendances, real estate agents are reporting it feels like a return to the old days and it’s putting a spring in the step of the property market.