Melbourne real estate agents are preparing for the prospect of the biggest disruption to the city’s housing market since Covid as fuel supply issues continue.
Victorian home inspections could be slashed back and virtual walk troughs take off as real estate agents prepare for a post-Easter fuel price hit to the state’s housing market.
The sector is bracing for the possibility of the biggest disruption since Covid-19 lockdowns, with regional areas expected to face the biggest impacts.
It comes as Melbourne recorded a relatively weak clearance rate from a monster auction week that had upwards of 1900 homes scheduled to go under the hammer — the second busiest March week since 2019, and the biggest so far this year.
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PropTrack figures show 59 per cent of properties sold, based on 994 results in preliminary figures late yesterday.
Senior economist Anne Flaherty said Melbourne’s clearance rate had been sliding from a 68 per cent high set in February, and that for Melbourne to have reached a clearance rate in the 50s this week was “indicative that it’s a relatively more challenging time to sell a home — though a great time to be a buyer”.
“This week has been a good indicator of where the market is actually at,” Ms Flaherty said.
Real Estate Institute of Victoria chief executive Toby Balazs said any result in the 50s showed the market was “very challenging” in Melbourne.
303 Lennox St, Richmond, defied the odds in a $4.2m sale under auction conditions.
A mix of some of Melbourne’s biggest real estate firms reported a mixed bag of results with Jellis Craig recording 126 sales from 179 auctions, according to chief executive Andrew McCann, while Ray White data showed the state’s biggest agency group had a 61.4 per cent clearance after scheduling more than 300.
Fletchers chief operating officer Jeremy Tyrrell said the firm had a 59 per cent clearance rate for the day after “quite a few surprises”, and that he believed a lot of results across wider Melbourne would have been negotiated to a sale after passing in — which is still recorded as an auction sale.
Apollo Auctions’ Greg Brydon said while he had been surprised to record four sales from four auctions, half had been negotiated with just a single buyer in pursuit.
Next week Victoria‘s auction numbers plunge to just 166 for the Easter long weekend.
Real Estate Industry Partners boss, and Harcourts Move director, Sadhana Smiles said agencies would be using the downtime to prepare strategies to cope with fuel shortages.
Ms Smiles said there was already less activity at open homes during the week, and it was likely agents would pivot to mostly weekend inspections.
Real Estate Industry Partners chief executive Sadhana Smiles says agencies are planning for major changes in the face of a worsening fuel crisis.
“I think moving towards more structured open homes is probably one of the first steps,” Ms Smiles said.
“If you can condense more people into fewer time frames, you might have more people being funnelled through together.”
She added that markets with significant demand from holiday home buyers could see significant reductions in numbers at inspections.
“Regional markets often feel the impact before Melbourne markets, and I think that will happen again this time,” Ms Smiles said.
“And I think there will be more people asking for virtual inspections.”
64 Elm Grove, Kew East, was also on the strong sales list, with a $2.98m change of ownership recorded at auction.
The latter is something she anticipates will also come to Melbourne, including for rentals, as buyers and tenants look to prioritise homes they are more confident will suit their needs and budget.
Both Mr Tyrrell at Fletchers and Mr McCann at Jellis Craig said their firms intended to increase fuel allowances to help keep agents on the road, with Mr Tyrrell adding they might also look to host more in-room auctions to minimise travel.
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