CONFIDENCE has returned to the Knox property market.
Clearance rates are on the rise, numbers are up at auctions and open for inspections, and multiple offers are again rolling in on Knox properties.
The market resurgence in the wake of the federal election outcome, the loosening of lending criteria and two consecutive interest rate cuts has opened a window of opportunity for buyers and sellers.
“There’s a lot of pent-up demand,” says KR Peters director Peter Nicolls.
“Buyers sat on the fence because of uncertainty around the election and they were waiting until the market bottomed out.
“There are indicators that happened last November or December. So now is the time to buy because the market is starting to move across Melbourne.”
Mr Nicolls estimates Knox prices have climbed about 5-6 per cent in the past few months, the beginning of a steady price growth cycle.
Improving clearance rates are another signal the market is bouncing back and rewarding sellers.
CoreLogic’s Quarterly Auction Market Review shows solid improvement in auction clearance rates across Melbourne, up from 51.8 per cent in the first three months of the year to 59.5 per cent in the June quarter.
Melbourne’s outer-east was among the strongest performers in the June quarter, posting a 62.9 per cent clearance rate from 498 auctions.
This compares to 52.1 per cent in the March quarter when there were 421 auctions, and 58.5 per cent from 897 auctions in the June quarter last year.
Wantirna led the way for local auction success, with a 73.1 per cent clearance rate from 32 auctions. It was followed by Ferntree Gully, with a 63 per cent clearance rate from 50 auctions and Wantirna South where 58.1 per cent of the 34 auctions held ended in a sale. Rowville recorded a 50 per cent clearance rate from 25 auctions in the June quarter.
Vendor Livio Falcone used KR Peters to sell a new five-bedroom house in the Wantirna Rise estate at auction in June. The house, at 4 Aberdeen Way, Wantirna, sold for $1.15 million.
Mr Falcone and his sister turned to KR Peters to sell the home, which they took over building from their father when he passed away, on the recommendation of friends and colleagues.
“I wanted someone who would be honest and wasn’t just going to tell me what I wanted to hear, but instead what I needed to hear,” Mr Falcone said.
He is now looking to buy an investment property.
“I’ll be looking again as soon as settlement comes through. It’s a good time to buy,” he said.
The new air of market confidence also saw 56 groups inspect three double-storey townhouses that hit the market in Boronia.
KR Peters sold the first of the new townhouses, at 11 Roy Court, for $797,500 at a May 25 auction.
The other two, at 114a and 114b Kanooka Rd, were snapped up for $740,000 each at private sale on June 25.
Mr Nicolls said the stylish trio captured buyers’ attention with their smart design, own street frontage and no body corporate.
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