Melbourne winter market ends with a bang – spring awaits | Dr. Andrew Wilson

Melbourne’s weekend winter auction market finished the season on a high recording the highest clearance rate since last September.

The 77.7 percent result was achieved despite a significant rise in listings numbers that heralds the start of the spring selling season next weekend.

770 properties were scheduled to go under the hammer in Melbourne at the weekend well up on the 647 auctioned over the previous weekend. Record numbers of properties for the month were auctioned over August with nearly 3300 listed in the metro area.

The 77.7 percent clearance rate recorded was above the 75.3 percent recorded the previous weekend and significantly higher than the 71.8 percent recorded over the same weekend last year.high interest rates

The Melbourne winter auction market has clearly strengthened over recent weeks with the current four weekend average at 75.3 percent compared to the previous four weekend result of 74 percent.

Melbourne’s boom suburban region the outer east again recorded the highest clearance rate at the weekend with a strong 84.7 percent result.

This was closely followed by the south east with 84.6 percent, the north east 83.3 percent, the inner east with 82.2 percent and the highest number sales at 83, the inner south 80.4 percent and the north west with 79.1 percent.

Notable sales in the outer east reported at the weekend included a 4 bedroom home at 45 Bogong  Avenue Glen Waverley sold for $1,780,000 by JRW Property International, another 4 bedroom home at 31 Charlotte  Street Glen Waverley sold by Fletchers for  $1,600,000, a 4 bedroom home at 22 Rhodes Drive Glen Waverley sold for $1,355,000 by Harcourts Glen Waverley and another 4 bedroom home at 25 Catalina  Avenue Ashburton sold for $1,340,000 by Mackintosh First National.

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The most expensive property reported sold at auction at the weekend was a 5 bedroom home at 1-3 Palm Grove Balwyn sold for $3,180,000 by RT Edgar. The most affordable property reported sold at the weekend was a 2 bedroom unit at 3/21 Empire Street Footscray sold for $260,000 by Sweeney Footscray.

Next weekend is the first test for the spring market in Melbourne with listings set to rise significantly through to the end of the year. A solid and rising market performance over winter ensures a confident start to spring with the prospect of continuing encouraging results for sellers.

Although clearance rates are set to continue at healthy levels, prices growth is unlikely to match the strong results recorded over last spring with rising affordability barriers acting to constrain growth.

The Reserve Bank meets this week for its regular monthly meeting and although economic indicators remain mixed the bank is likely to leave rates on hold for the 13th consecutive month – the longest steady sequence since 1998.

Although rates are set to remain on hold over the near-term a weakening economy – particularly rising unemployment – together with a stubbornly high dollar will continue to put a downward bias on potential interest rate outcomes.

You can read all the auction results at http://www.homepriceguide.com.au/



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Andrew Wilson

About

Dr Andrew Wilson is Australia’s leading housing market expert. As senior economist for Fairfax-owned Domain Group, Dr Wilson is one of the nation’s most respected real estate analysts and Australia’s highest profile housing market commentator. Visit his blog at Domain


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