15th March 2021 / Rob Fletcher: Market Update | 13 & 14 March 2021

Melbourne's rainy weather proved no deterrent for buyers at auction over the weekend, with exceptional results achieved across all suburbs and prices ranges.

Culminating in a stunning outcome for the Fletchers Group, 28 out of 29 properties were sold across our network on Saturday, resulting in an auction clearance rate of 96.55%. In Victoria, 825 auctions and 178 private sales took place, resulting in a state-wide clearance rate of 82%.

Current trends at auction suggest that the historically low interest rates of 0.10% are directly affecting borrowing power, pushing up property prices significantly from where they were a year ago.

'Ultra-low interest rates are pushing up property prices, with new figures showing the average home buyer could spend $41,000 more at auction than a year ago,' according to Domain.

The article continues, 'with cheaper mortgage repayments, a borrower on an average income of $89,000 who has saved a 20% deposit could have a budget of $806,250. A year ago, the same buyer would have had less borrowing power and a budget of only $765,000. Both figures assume their home loan was at the lowest variable rate,' research from comparison website, Canstar, had found.

In Fletchers news, our busy auction weekend showed no signs of slowing down, with several properties selling well above their reserve price and buyers becoming more bullish as competition increases week-to-week.

Senior Associate, Rino Presutto, was in the action on Saturday, selling 18 Hatfield Street in Balwyn North under the hammer for $2,500,000, an outstanding result reaching $500,000 beyond its reserve price. With more than 200 people in the crowd, the auction saw 8 registered bidders compete for the keys to the property.

'Best auction I've been a part of since I've been at Fletchers,' he said.

Success. It's a Fletchers thing.