Caroline James and Amy Hattam From: Sunday Herald Sun November 28, 2009 9:35PM
MORE than $900 million worth of real estate sold across Victoria yesterday, as the state held its biggest home shopping sale for 2009.
Jubilant vendors watched as buyers – frustrated by this year’s 17 per cent drop in listings – paid millions of dollars more than asking prices for the 775 homes that sold at auction.
By 6.30 last night, the results of 997 auctions and 747 private sales had been recorded by the Real Estate Institute of Victoria – more than any other Saturday this year. About 160 booked auctions were still unreported.
Pundits dubbed the day Supersonic Saturday.
The past week’s private sales netted $327.43 million for homeowners and its auctions reaped $582.7 million – a total of $910.13 million.
Realty agents are celebrating today, having earned more than $27 million in commission payments in the past week.
And while the clearance rate dipped 2 per cent to 78 per cent, Victoria’s average clearance rate remains at 80 per cent on the strength of its 28-week stint above 80 per cent since May 16.
Stunned bystanders watched the price of a three-bedroom terrace house in Albert Park soar to $1.45 million, more than 70 per cent above reserve.
The Moore Company had quoted $750,000 to $850,000 for the Montague St home.
Auctioneer David Evans was “staggered” by the result as the vendors “would have been happy” with $900,000.
More than 100 people saw 10 Duke St, Richmond, sell in less than 10 minutes when six bidders pushed its sale price to $810,000 – almost 21 per cent above its $670,000 reserve.
Yesterday’s sales frenzy fell about $5 million short of this year’s biggest Saturday, October 24, when $915.57 million worth of property changed hands.
But yesterday’s results add to an extraordinary second half of 2009.
Melbourne’s median house price, currently $480,000, has rebounded from its March slump to $405,500.
Real Estate Institute of Victoria chief executive Enzo Raimondo said median house prices could rise as high as $530,000 next year if today’s economic landscape of low interest rates and under supply of housing stock prevailed.
By 2015, that figure would rise to $650,000 to $700,000 for an average house.
And the median would hit $1 million by 2020, Mr Raimondo said.
But the REIV boss warned buyers against over-confidence.
Homeowners are bracing for a possible further interest rate rise when the Reserve Bank meets on Tuesday.
“McMansion owners can find themselves selling at a discount to the price they paid to build,” Monique Sasson Wakelin, of Wakelin Property Advisory director, warned.
