Solid Results for Melbourne’s Auction Market | Dr. Andrew Wilson

Melbourne’s weekend auction market continues to record solid mid-winter results with a clearance rate at the weekend of 71.4 percent.

Although down on last weekend’s two-month high 74.6 percent result, it was nonetheless well ahead of the 66.3 percent recorded over the same weekend last year.

With the advent of school holidays and other mid-winter distractions impacting the market, just 458 auctions were conducted at the weekend which was well down on last weekend’s 681 but still significantly higher than the 363 conducted over the same weekend a year ago.

Melbourne’s outer east continues to lead the pack by reporting the highest regional clearance rate at the weekend with 79.1 percent. Next best was the north with 77.3 percent followed by the north east with 76.1 percent, the inner east 74.1 percent and the inner city with a clearance rate at the weekend of 70.7 percent.

Standout sales results:

House auction

In the outer east included a  3  bedroom home at 2 Fiander  Avenue Glen Waverley sold by Barry Plant for  $1,070,000, a  2  bedroom home at 29 Gloucester  Road Ashburton sold for  $1,001,000 by Hocking Stuart,  a  3  bedroom home at 1/47 Ward  Street Ashburton sold by Buxton for  $940,000 and a  4  bedroom home at 8 Layton  Court Glen Waverley sold for  $919,000 by Ray White Glen Waverley.

The most expensive property reported sold at auction at the weekend was…

A 5 bedroom home at 21 Clancys Lane Doncaster sold for $2,350,000 by Jellis Craig. The most affordable property reported sold at the weekend was a 2 bedroom unit at 3/7 Coventry Place Melton South sold for $177,000 by First National Tim Farnan.

Auction numbers will decline over July when compared to previous months this year but will remain atypically high for winter particularly when compared to last year.

Low interest rates will keep home buyer activity ticking over with clearance rates set to remain above those recorded over the same time last year.

This week the Reserve Bank predictably left rates on hold for the 10th consecutive month – the longest period of stable rates in over 8 years – and with no likelihood of a change for the foreseeable future.

Low interest rates also unsurprisingly continue to stimulate home building in Melbourne.  2027 houses were approved for building over May which is the highest monthly total since August 2011.

The number of houses approved for building in Melbourne has increased by 1780 or 25 percent over the first five months of this year compared to the same period last year. Unit approvals have increased by 823 or 11 percent this year.



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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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