By VANESSA VALENZUELA
HOME auctions in the City of Brimbank are struggling to attract buyers with only 273 properties sold under the hammer last year, new data has revealed.
Figures from the Real Estate Institute of Victoria reveal home auction rates in Sunshine have dropped by 31 per cent with only 48 houses sold last year compared to 118 properties in 2010.
In Sunshine North just 28 homes were sold at auction in 2011, accounting for 20 per cent of the 138 properties sold last year.
Albanvale was the only suburb within Brimbank to have recorded an increase in auction sales recording an increase of two per cent despite only six properties being sold at auction in 2011.
The data suggests homeowners in Caroline Springs and Kings Park prefer to sell their properties through private sales with less than two per cent of houses sold at auction.
REIV CEO Enzo Raimondo said auctions are the most popular sales method in the inner city while the outer suburbs prefer to sell their homes privately.
“This in part explains why the median price of a home sold at auction is higher than one sold at private sale as residential property is much more expensive in the inner suburbs,” he said.
Michael Nincevic from Westside Real Estate in St Albans said homeowners are choosing to sell their properties privately because there are fewer buyers in the market.
“Auctions aren’t working as well as they were when the market was better. The demand isn’t as strong as it was during the boom,” Mr Nincevic said.
“But what we are noticing lately is that volume of sales have started to increase which is a positive sign that more properties are being sold, compared to two or three months ago.”
