Sellers in the Heathmont and Ringwood areas are shifting to auctions to cash in on rising buyer demand.
“Buyers like the short, sharp campaigns of auctions and more sellers are shifting towards auctions,” Barry Plant Heathmont/Ringwood director, Louise Carrigg said.
“It used to be 50:50 for private sales and auctions in the area but we are seeing more auctions now.”
Another major change is auction campaigns being reduced from four to three weeks in response to the market conditions.
“There is urgency among buyers who have come back into the market strongly after the Christmas and summer break,” she added.
“And April is looking strong with more properties going to auction.”
Suburbs in this outer-east region are traditionally more popular among buyers in autumn than in the spring.
“Homes here are tightly held with not many properties for sale, and autumn is usually our strongest market,” Ms Carrigg said.
“In spring, stock levels rise and there is more competition for sellers.”
The agency scored an 80 per cent clearance rate last week, with three properties sold under the hammer, one sold prior and one passed in.
A two-bedroom townhouse on 239sq m at 1/13 Rosedale Crescent, Ringwood East, fetched $786,000 prior to its scheduled auction.
All three successful auctions gave sellers significantly more than they had expected March 20.
A three-bedroom renovator’s delight at 6 Beverley Court, Heathmont, sold for $1.015 million.
Multiple bidders attended 14 Byways Drive, Ringwood East, which fetched $985,000.
And an investor from Templestowe snapped up a development site at 6 Kirk Street, Ringwood.
“They will give the house a coat of paint and then rent it out,” Barry Plant Ringwood auctioneer Jay Carroll said.
“There were four bidders, including an investor from Western Australia who was bidding online.”
The starting bid was $1 million and rose quickly past the $1.15 million reserve price. The property sold for $1.325 million.
The property belonged to three sisters who had inherited it and sale records showed it was purchased for $36,000 in 1979.
Meanwhile, Barry Plant Eastern Group scored a 100 per cent clearance rate and racked up a total of 20 sales in the week ending March 21.
“This hot real estate market is set to continue right through to Easter and beyond,” Barry Plant Manningham managing director, Spiro Drossos said.
“Buyer confidence is increasing every week with strong auction success rates and buyers making strong offers at the first inspections to secure homes early.”