ANOTHER weekend of high demand and solid sales has laid the foundation for what is expected to be a much stronger real estate market in 2010.
Clearance rates of 87 per cent in the past fortnight were the highest for the year. This weekend's 693 auctions produced a clearance rate of 84 per cent, significantly better than the same time last year when it was 74 per cent.
And as long as buyer demand continues to outweigh supply, this trend is likely to continue.
Frank Valentic of Advantage Property Consulting said 35 McNamara Street, Preston West, was quoted at $505,000 and sold for about $604,000. Another property, at 9 Towers Street in Beaumaris had an asking price of $720,000 and sold for $822,000.
''I've never had a private sale sell $100,000 over and it happened twice this week,'' Mr Valentic said.
According to the Real Estate Institute of Victoria, demand has been particularly high in the inner west.
The median house price in Footscray was at $311,000 five years ago and has since appreciated by 94 per cent to $602,500, above Melbourne's median of $540,500.
Craig Stevens of Jas H Stephens Real Estate said five bidders pushed the price of a five-room home at 36 Hamilton Street in Seddon.
The double-front period-style home sold for $861,000, more than $100,000 above its reserve of $750,000.
Mr Stevens said there was strong demand in the region, as it was about 25 per cent cheaper to live in the inner west than the inner east and north.
JPP Buyer advocate Catherine Cashmore said transport was a key factor in easing the price pressure.
''The eastern suburbs benefited considerably when the Eastern Freeway opened, and buyers flocked to the area because it offered the potential of an easy commute.
''Buyers would start moving outwards, rather than being forced to move upwards or pay above the odds for property.''
Noel Jones group chairman Adrian Jones said investors were back in the market ''with a vengeance'', after a four-room property at 4/44 Walpole Street in Kew sold for $508,000, above a $430,000 reserve and despite a previous sale in the block going for $390,000.
''There's a lot of pressure on the market … with so much population growth, a strong economy and good prospects for the future, I can't see it stopping.''
?Clearance rates of 87 per cent the highest for the year.
?REIV says demand is particularly high in the inner west.
?In five years, the median Footscray house price has risen 94 per cent.
