Melbourne’s robust home auction market has ended summer with a steady result despite a surge in listings – particularly in the inner suburbs
Low interest rates have kept the market bubbling along this year so far in what clearly remains a sellers’ market.
These conditions are likely to continue through autumn with confidence reinforced by sturdy auction results.
Saturday’s clearance rate of 75.3 per cent was lower than 77.9 per cent recorded the previous weekend and also below the 80.1 per cent recorded over the same weekend last year.
This year’s clearance rates to date remain the highest since last winter and confirm the underlying quiet and resilient confidence of the local market.
Melbourne hosted significantly higher auctions this weekend with 1212 listings compared to 929 last weekend – predictably lower than the 1341 auctioned over the same weekend last year, a number inflated by the usual pre-Labour Day holiday weekend surge.
There were again remarkably consistent results between the suburban regions at the weekend, a reflection of the current evenness of buyer activity in the local market.
The inner south produced a strong result on Saturday with the leading clearance rate of 82.7 per cent, and also the highest number of sales, with 134.
Next highest was the north-east with 76.6 per cent, followed by the west 76.2 per cent, the south-east 75.7 per cent, the outer east and the inner-east each with 75.2 per cent, the inner city 71.9 per cent and the north 71.6 per cent.
Just 11 per cent separated the high and low regional results on Saturday – with only one above 80 per cent and none below 70 per cent, it indicates overall consistent market conditions.
The most expensive property reported sold at auction at the weekend was a four bedroom home at 3 Crestmont Court, Toorak, sold for $5,795,000 by Sotheby’s Realty.
The most affordable property reported sold at the weekend was a one bedroom unit at 4/8 Kangaroo Road, Murrumbeena, sold for $280,000 by Woodards Carnegie.
Melbourne’s weekend median auction price was $832,000, significantly higher than the previous weekend’s $750,000.
Saturday’s median was also 6.5 per cent higher than the $781,000 recorded over the same weekend last year.
A total of $534.5m was reported sold at auction in Melbourne at the weekend.
The Reserve Bank meeting this week will determine the direction of official rates over March.
Rates are likely to remain steady at 2 per cent for the tenth consecutive month however the chances also remain of a near-term cut particularly if the jobless rate – now over 6 per cent again – keeps rising.
For a full list of the Melbourne auction results click here.