Melbourne buyers panic as homes sell before auction

From Brighton backyards to Brunswick terraces, more Melbourne homes are being snapped up before the auctioneer takes the stage, as confident sellers cash in early and buyers desperate to beat the next price rise make bold midweek offers.

PropTrack data shows 1181 auctions are scheduled across the city this week, with another 1204 next week.

Clearance rates are holding near 75 per cent, among the strongest spring results in some, signalling that the city’s housing recovery is now firmly underway.

PropTrack senior economist Angus Moore said Melbourne’s market had clearly turned the corner after two slow years.

“Market conditions are much firmer than they’ve been for quite some time,” Mr Moore said.
“Clearance rates have been strong and, perhaps more importantly, prices are now recording steady, consistent growth. That’s a real change from 2022 and 2023, when prices were flat or falling.”

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More Melbourne homes are being snapped up before the auctioneer takes the stage.

PropTrack economist Angus Moore

Rate cuts were lifting borrowing power and confidence across the board, Mr Moore said.

“It usually takes a few months for rate changes to flow through to sales data,” he said.

“But the market tends to anticipate them ahead of time.
“That’s what we’re seeing now, stronger expectations feeding through to activity.”

While economists point to firmer foundations, Melbourne buyers’ advocate Simon Murphy said competition on the ground has become ruthless, and that’s fuelling a surge in pre-auction sales.

“If someone falls in love with a property, they’ll still make a move, that hasn’t changed,” Mr Murphy said.
“But most buyers are missing out, auctions are regularly going $200,000 to $300,000 above reserve or above the advertised range, so people are trying to get in before that happens.”

Mr Murphy said many sellers were choosing the security of an early offer rather than gambling on Saturday’s crowd.

“Sometimes the agent just gets the price wrong from the start,” he said.
“Then an offer comes in close to or above the range and the seller takes the safe bet.
“Every decision’s a gamble – could they have got more? Maybe. But they want the certainty.”

Melbourne Property Advocates Director Simon Murphy

The most intense bidding was in the sub-$1.5m bracket, where homes were almost guaranteed to smash the top of their quoted range, Mr Murphy said.

“That’s the new norm,” he said.
“Any property going to auction right now is almost guaranteed to go $200,000 or $300,000 over the top of the range.”

Mr Murphy also said chronic underquoting across the state was also eroding trust.

“Let’s be real, there’s no trust left, If Consumer Affairs were enforcing penalties properly, we’d all know about it. But they’re focused on other things.
“Even so, confidence is flooding back, all the quality properties are selling fast.
“The difference now is that people aren’t scared anymore, they just want to lock something in before the next price rises.”

With interest-rate cuts filtering through and spring listings climbing, agents expect the city’s auction heat to hold through November as Melbourne’s comeback gathers pace.

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