Melbourne’s weekend auction market retreated at the weekend recording its lowest clearance rate since early July.
The 72.7 percent result was below the previous weekends 75.6 percent rate and just higher than the 71 percent recorded over the same weekend a year ago.
Although this weekend’s weaker result broke a trend of rising clearance rates over the past month, the rate was nonetheless another relatively solid result for a market that has proven particularly resilient not only over winter but also for most of the year.
A moderation in clearance rates may reflect higher listing numbers at the weekend with 624 homes auctions scheduled compared to the 528 auctioned the previous weekend.
Auction numbers were just above the listings recorded over the same weekend a year ago when 572 homes went under the hammer.
Melbourne’s inner east again recorded the best result of all the suburban regions at the weekend with another strong clearance rate of 83.3 percent.
This was closely followed by the outer east with 82.4 percent and the north with 81.3 percent. Next best was the north east with 77.8 percent and the inner south with 69.7 percent
Standout sales results:
in the inner east included a 4 bedroom home at 4 Winifred Court Templestowe sold for $3,350,000 by Ray White Manningham, another 4 bedroom home at 3 Delfi Court Balwyn sold by Hocking Stuart, for $2,330,000 a 4 bedroom home at 29 Rangeview Grove Balwyn North sold for $1,920,000 by Jellis Craig and another 4 bedroom home at 3 Jacka Street Balwyn North sold for $1,910,000 also by Jellis Craig.
The most expensive property reported sold:
Was at auction at the weekend was a 4 bedroom home at 47 Kensington Road South Yarra sold for $3,800,000 by RT Edgar.
The most affordable property reported sold at the weekend was a 2 bedroom unit at 10/81 Rufus Street Epping sold for $200,000 by Hocking Stuart.
Low interest rates have been a key catalyst for Melbourne’s solid house prices growth over the past year.
Last week the Reserve Bank met for its regular monthly meeting and decided to again leave interest rates on hold.
Rates have been on hold since August last year and although they are most likely to remain unchanged for the rest of the year, the macro environment has perhaps shifted to an emerging downward bias on the short term direction of rates. Much will as usual depend on the nature of the economic data over the coming months.
Last week’s ABS July unemployment data was a sobering result for the national economy with the jobless rate rising sharply to 6.4 percent – the highest level for nearly 12 years.
And the Victorian rate shot up to a troubling 7 percent – the highest rate recorded since October 2001 and the highest of all the mainland states.