Victorian Property Market Surges with 82% Auction Clearance Rate.

Although it must be noted when looking at the numbers below it still shows an undersupplied market where we are seeing an oversupply of poor quality properties.

Scheduled Auctions
750

Reported Auctions
391

Total Sold
321

Total Passed In
70

Clearance Rate
82%

The Victorian property market is showing strong signs of resilience, with an impressive 82% auction clearance rate over the weekend. This figure indicates a robust level of buyer confidence and heightened competition, suggesting that demand is outpacing supply. But what does this mean for homeowners, investors, and first-time buyers?

What Does an 82% Clearance Rate Indicate?

Auction clearance rates serve as a key barometer of market sentiment. Generally:

Above 80% – Indicates a seller’s market, where demand is strong, and prices are likely to rise.

Between 70-80% – A balanced market with low but stable growth.

Between 60-70% – A balanced market with steady activity.

Below 60% – A buyer’s market, where sellers may struggle to secure strong offers.

With a clearance rate well above 80%, the market is clearly in favour of sellers, signalling heightened competition and strong sales results, although in this current market we are seeing that the low stock levels are meaning more lower quality properties being put on the market.

What’s Driving the Strong Auction Results?

Several factors could be contributing to this high clearance rate:

Low Stock Levels – Fewer listings mean increased competition for available properties.

Stable Interest Rates – While rates remain high, the absence of further hikes may be giving buyers confidence.

Strong Demand from Upsizers and Investors – Many buyers are looking to secure properties before prices climb further.

FOMO (Fear of Missing Out) – With rising prices, buyers may be rushing to secure properties before affordability worsens.

What This Means for Buyers and Sellers

For Sellers: It’s a prime time to list a property, as strong demand could lead to premium prices.

For Buyers: Expect competitive bidding and potential price increases for good property. Acting quickly and being well prepared is crucial.

For Investors: The market’s strength could indicate future price growth, making it a potentially attractive time to enter or expand a portfolio.

Looking Ahead

If clearance rates remain high, we could see continued movement towards price growth in Victoria’s property market. However, economic factors such as inflation, interest rates, and government policies will play a crucial role in shaping market conditions over the coming months.

For now, though, the numbers don’t lie Victoria’s real estate market has potential to run hot, and buyers are stepping up to compete. If you are thinking about buying or selling, now might be the time to make your move and call Rodney Samuels Consulting.