The Melbourne auction market dipped at the weekend, with the clearance rate falling to its lowest level in over two years.
A relatively low result from the inner east market was a key factor driving the lower rate at the weekend.
Next weekend will be the biggest challenge of the spring selling season, when a record number of homes will flood the market looking for buyers.
There will be more than 1600 auctions, which will set a new Saturday record for auction activity
The local market has produced overall steady results this spring, but clearance rates have weakened in the face of unprecedented listings and higher interest rates.
Nonetheless the market remains in good shape and continues to offer positives and opportunities for both buyers and sellers in most regions.
So bring on the Super Saturday to end all Super Saturdays next weekend.
On Saturday, a clearance rate of 66.3 per cent was achieved – below the 69.8 per cent recorded the previous weekend and less than the 67.1 per cent recorded over the same weekend last year.
There have now been four consecutive weekends with clearance rates below 70 per cent – for the first time since July 2013.
However, the recent decline in clearance rates reflects a typical late-season fade-out as higher listings push supply towards demand.
Clearance rates fell similarly last year over November and December.
On Saturday, 1231 homes were auctioned, which was below last weekend’s 1339 but well ahead of the 1154 auctioned over the same Saturday last year.
Although the suburban regions continue to generally record comparatively similar results, the inner east produced the lowest rate at the weekend from the highest listings and was significantly below the rates recorded by the other regions.
This contributed to the dip in the result for Melbourne at the weekend.
The south east recorded the highest clearance rate at the weekend, with 74.3 per cent, followed by the north east 70.5 per cent, the north 69.9 per cent, the inner south 69.6 per cent, the west 68.8 per cent, the outer east 66.4 per cent, the inner city 65.6 per cent and the inner east just 58.2 per cent from 158 reported auctions.
Melbourne’s trend weekend auction price increased again at the weekend up from the previous weekend’s $768,250 to $770,000.
The weekend trend price remains 8.5 per cent higher than the $709,000 recorded over the same weekend last year.