THE choice between selling at auction or through private sale is one that all vendors must make. The percentage of sales through auctions in and around Melbourne have nearly doubled since 2011, up from 16.2 per cent to 30.9 per cent last year. In 2018, they are running at an estimated 36.4 per cent.
While auctions are not as commonplace in regional Victoria as they are in the state’s capital, the upward trajectory is similar. In 2011, only 3.1 per cent of properties exchanged hands under the hammer, but in 2017, it was 5.7 per cent. The estimate for this calendar year to date is 6.6 per cent.
Even more welcome news for those vendors in regional Victoria is that auction clearance rates are shading those in Melbourne.
In several communities across Victoria, there has been an increase both in the number of auctions and clearance rates. Belmont, Herne Hill and Grovedale in Greater Geelong; Torquay and Jan Juc on the Surf Coast as well as Echuca, Shepparton, Mildura and Ballarat Central are in this category.
In all except Ballarat Central, there was also an increase in the house median price in the March quarter. While auction activity is on the rise, and Victoria leads the nation in real estate auctions, private sales still account for roughly two thirds of all property sales.
Both auction and private sale offer advantages and restrictions. The preferred method might not become clear until vendors consider various factors and circumstances. These include the state of the market generally, the location and style of the property, the anticipated interest from prospective buyers, the sales costs and the timing of the sale.
Consultation with an REIV agent who knows the area will assist vendors in understanding all of the options and making the decision to deliver the best return.
To locate an REIV agent near you, visit reiv.com.au /membership/choose-an-reiv-member.