Only a mild improvement in Melbourne auction price guidance since Easter break

Depite the obvious strengthening in the 2013 property market, there has only been a slight improvement in estate agent price estimations since the Easter break.

Melbourne agents have seemingly slightly tweaked their auction sale price expectations, according to the latest Property Observer analysis.

But homes that sell at auction are still selling well above pre-auction price guides provided by agents, albeit by a slightly reduced amount.

Before Easter, a survey of 142 Melbourne auction sales found 83% of sales fetched above pre-auction price guides. Those 83% sold, on average, for 9.55% above the upper price bracket of the pre-auction price guide indication.

A new post-Easter survey of 69 Melbourne auction sales has found slightly more sales, 86%, exceeded price guides but they were slightly closer to the upper price bracket – an average of 8% over.

Of the 69 sales analysed, 22, or 32%, of them sold more than 10% above the upper price bracket. That’s compared to 30% of the pre-Easter auction sales.

The shift in near accuracy - or buyer over-bidding hestitation - came amid the homes selling for more than $1 million.

Before Easter, 91% of homes analysed which sold for more than $1 million went for above pre-auction price estimates. And 48% went for more than 10% above the upper price bracket of the price guide.

Those that sold above went for an average of 15% over.

But in the post-Easter results for the $1 milllion plus category, 85% sold for above pre-auction price estimates and 23% for more than 10% above.

Those that sold above went for an average of just 5.3% over.

The analysis comes from auction results recorded by National Property Buyers. The sales are usually desirable homes that National Property Buyers deems to somewhat worth buying for investors.