Powerful auction clearance rates and price increases have homeowners in Melbourne’s east starting to pay attention to the market again.
In a show of strength, Manningham and Whitehorse recorded a combined clearance rate of 82 per cent from 100 auctions for the week ending February 23.
It outperformed the 79.6 per cent recorded across Melbourne, data from realestate.com.au shows.
A two-bedroom Mont Albert unit almost cracked the $1 million mark after bidding from five bidders at its February 22 auction.
Investors, downsizers and young couples all placed bids at 1/6 Gilbert St, which sold for $995,000 to a local investor.
Ray White Forest Hill agent Steven Yuen said the unit market ticked boxes for a variety of buyers, increasing competition.
“They always appeal to a broader buyer base,” Mr Yuen said. “And with a lot of buyers that missed out last year, they were just very hungry and motivated to pick something up.”
Mr Yuen said he was seeing more homeowners at auctions paying attention to price movements on comparable properties.
“We’re getting a lot more homeowners curious and a bit more engaged now — they get a bit more confidence with the market moving,” he said.
Mr Yuen expected an increase in new listings over March and April, as homeowners looked to profit off strong recent results.
He said young buyers were showing more desperation, with two groups bidding and losing out at back-to-back Mont Albert auctions.
“With downsizers, they usually take their time and find the right one,” he said. “But if (young couples and first-home buyers) miss out, they go to the next one, they are more hungry.”
“That element of desperation or motivation is really high — that’s helping lots of homeowners achieve competitive bidding.”
The Forest Hill agent also sold 44 Hibiscus Rd, Blackburn North for $1.88 million on the same day.
Five groups bid hard on the five-bedroom house, which sold for $130,000 above the reserve price to an Ivanhoe family.