Melbourne November 8th auction report
The Melbourne weekend auction market resumed on Saturday after last weekend’s pause for the Melbourne Cup holiday long weekend.
Strong auction numbers however impacted on the market with the clearance rate falling sharply to 71.6 percent.
This was the lowest reported by the Melbourne market since the first weekend of July over 4 months ago and well below last weekend’s holiday result of 80 percent and also below the 73.1 percent recorded over the same weekend last year.
977 homes were listed for auction at the weekend in metro Melbourne which was unsurprisingly well above last weekend’s 132 and also just higher than the 961 auctioned over the same weekend last year
Clearance rates falling
Melbourne’s four-weekend average clearance rate now stands at 74.3 percent compared to 78.8 percent over the previous four-weekend period.
Strongly rising auction listings will continue to test the market through the remainder of November with the underlying trend now clearly waning.
Melbourne’s south east reported the highest regional clearance rate at the weekend with a strong 84 percent result.
Next best however were well below led by the outer east with 76.5 percent, the north east 75.2 percent, the inner south 71.9 percent, the inner east 70.9 percent and the inner city with a clearance rate of 69.5 percent.
Notable sales in the south east reported at the weekend included a 5 bedroom home at 8 Tori Place Patterson Lakes sold for $722,500 by Hocking Stuart, a 3 bedroom home at 14b Black Street Chelsea sold for $717,500 by Ray White Chelsea, another 3 bedroom home at 16 Whitworth Avenue Springvale sold for $700,000 by McDonald Real Estate and a 4 bedroom home at 12 Governor Arthur Drive Patterson Lakes sold for $686,000 by Hocking Stuart.
The most expensive property reported sold at auction at the weekend…
Was a 5 bedroom home at 9 Cole Street Hawthorn East sold for $3,800,000 by Hocking Stuart.
The most affordable property reported sold at the weekend was a 1 bedroom unit at 18/697 Barkly Street West Footscray sold for $171,000 by Sweeney Footscray.
Auction activity will continue to rise over the next 5 weekends testing the market with buyers spoiled for choice and sellers looking for a result before Xmas.
Solid auction activity in Melbourne this spring has been generated significantly by low interest rates.
This week the Reserve Bank predictably decided to leave interest rates at the 60 year low of 2.5 percent for the 15th consecutive month – the longest steady sequence since 2003.
With house price growth now moderating in most capitals within an overall flat economic environment, interest rates are set to remain on hold through to 2015. A continuing deterioration in the jobless rate however will increase the likelihood of a rate cut sooner rather than later in the New Year.
Latest jobless data from the ABS reports that the national unemployment rate remained fixed at 6.2 percent over October – the highest level since March 2003. The Victorian unemployment rate remains stuck at 6.8 percent – the highest rate recorded by the state since December 2001.
See all the Auction Results at http://www.homepriceguide.com.au/