Wyndham properties are going under the hammer faster than it can come down at times – and fetching prices well above their reserves.
New figures released by Real Estate Institute of Victoria (REIV) show a sharp rise in the number of homes going to auction in Wyndham – 240 so far this year, up from 152 this time last year.
Clearance rates have also shot up – from 61 per cent to 80 per cent in 12 months.
Werribee and Hoppers Crossing lead the auction stakes, followed by Wyndham Vale and Point Cook.
Rob Westwood from Westwood First National said record low interest rates and the sheer number of buyers have created the perfect sellers’ storm.
“There is a huge buyer demand … massive,” he said.
“Two years ago, if you had mentioned an auction to vendors, they would have run the other way.
“But today, it is the way to get the best possible price on the day.
“The best way for a seller to get the best possible price is to have competition and buyers fighting against each other.
“I’ve never seen the market like this – it’s investors, it’s owner-occupiers, it’s entry-level buying … we have investors from Sydney who are purchasing properties sight unseen.”
Mr Westwood said buyer demand is so high, properties are sometimes selling before the first open for inspection.
Samantha McCarthy, from Hockingstuart Werribee, said a shortage of homes on the market is helping to drive up demand, making selling properties by auction more viable.
Ms McCarthy said the Werribee office is averaging seven to eight auctions each weekend – one three-bedroom house on Derrimut Road, with a reserve of $420,000, fetched $545,000 recently at auction, and also received offers prior.
“What we’re finding is that people are prepared to pay more on the day [of auction],” she said.
“It’s not like two or three people – we’re getting crowds of 30 or 40 people.”
Price data for the September quarter reveals Werribee’s median house price rose 11.3 per cent in the past three months to $395,000 – the biggest price jump in Wyndham.
Neighbouring suburb Hoppers Crossing was also a solid performer, with a median house price increase of 7.2 per cent to $422,000, while Tarneit is up 5.8 per cent to $455,500.
REIV chief executive Geoff White said many northern and western suburbs in and around Wyndham have experienced strong buyer interest and median price increases this year.
“Suburbs such as Hoppers Crossing, Tarneit and Werribee, along with Craigieburn and South Morang in the north, have drawn strong buyer interest, especially in the past six months,” Mr White said.
“The house median price for these suburbs is still below $500,000 and all have recorded solid growth … this makes Wyndham one of the most affordable and attractive areas.”
