Selling options for Melbourne homeowners
Auction clearance rates in Melbourne's middle-ring suburbs are as high as 97 percent in a trend the Real Estate Institute of Victoria (REIV) says reinforces the importance of location as a factor in successful property sales.
Real estate owners who have built up sufficient equity in their property may consider making the most of the cheap home loan climate in order to upgrade their existing properties.
However, selling their existing properties in a speedy fashion is essential in order to move seamlessly from one property to another.
Those based in Melbourne may wish to pay attention to the latest comments from the REIV.
In a June 4 article, the REIV explained that even in a strong market, some properties are going to do better than others when selling at auction.
Factors that can affect an area's clearance rate include location and house quality.
That's not to say that success isn't on the cards. In fact, for many individuals with home loans in Melbourne, the auction process runs remarkably successfully.
"Some suburbs have been in such high demand in recent months that very few properties are being passed in on the day of auction," the REIV explained.
For instance, middle-ring suburbs in eastern Melbourne tend to be snapped up. In fact, suburbs with strong transport links, easy access to shops and which have high-quality schools nearby tend to be incredibly popular.
Given that they are often a more affordable option than the capital's inner-eastern suburbs, they have been showing very strong demand in recent months, noted the REIV.
"Vermont South had a clearance rate of almost 97 per cent in the year to date, with 31 of 32 homes auctioned selling," according to the REIV.
"In neighbouring Wantirna, 30 of 31 homes auctioned sold and in Ashwood - where the median price was up 4.5 per cent in price for the March quarter - 20 of 21 homes sold at auction."
Use a mortgage calculator to work out your borrowing power and consider auction as a sale method if it's time to upgrade.
www.flickr.com/photos/lisbokt/4557191813Image credit: lisbokt