Victoria has absorbed its busiest auction day yet for 2022 with home prices soaring past expectations, and the next real test of its strength will be the federal election.
A McCrae beach house last sold for $195,000 25 years ago made more than eight times that figure when it sold under the hammer for $1.625m yesterday.
The Real Estate Institute of Victoria recorded a 78 per cent clearance rate from 681 results, though closer to 1000 auctions were scheduled.
Real Estate Institute of Victoria president Adam Docking said the healthy clearance rate, despite the number of auctions having doubled from a week ago, was a positive sign we were returning to a “normal” market.
“It will get to the point where the stock levels will satisfy the demand,” Mr Docking said.
“But even in a stable market there will be results that blow your mind.”
It was now increasingly likely the next real test of the property market would be political, rather than a matter of economics — though he said it was unlikely anything would stop prices continuing to grow, albeit at a slower rate than last year.
“The federal election will be the first test of how strong the market is, depending on how contested it is there’s a ‘what if’ factor,” Mr Docking said.
“And it does divert people’s attention the month before, so we will see a bit of a slow down in transactions.”
Among the results likely to have blown minds yesterday was the $1.625m sale of a McCrae beach house with a view over the Mornington Peninsula Freeway and about 10 power lines towards the bay.
The 49 Bayview Rd property sold for just $195,000 in 1997, but yesterday blew away all expectations after being called on the market at $1.28m — after the auctioneer forgot to do so at the undisclosed reserve.
YPA’s Elke Remscheid said she had expected it might make $1.2m, given the intrusion of power lines and a busy road.
“It is a massive result,” Ms Remscheid said.
“The vendors had tears running down their face as the auction kept progressing.”
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