The auction market absorbed a record-breaking avalanche of listings at the weekend to end spring on a positive note.
On Saturday, 66.2 per cent of homes sold under the hammer, just below the 66.3 per cent recorded the previous weekend and below the 67.2 per cent recorded during the same weekend in 2014.
Melbourne’s weekend clearance rates have averaged 70.1 per cent over spring this year, well below the 75.2 per cent averaged over the same period last year and the lowest result since the spring of 2012 when the average weekend clearance rate was 61.2 per cent.
Despite the lowest spring clearance rates in three years, it has been an all-time record spring for the number of auction sales, reflecting the unprecedented volume of homes going under the hammer over the past three months.
The inner east continues to record the lowest clearance rates of all the suburban regions, although this weekend’s result was just ahead of last weekend’s 58.2 per cent.
The north recorded the highest clearance rate at the weekend with 75.2 per cent, followed by the south-east 74.8 per cent, the inner city 698.9 per cent, the west 68.2 per cent, the north-east 67.2 per cent, the outer east 676.5 per cent, the inner south 665.7 per cent and the inner east 60.2 per cent from 196 reported auctions.
The trend for Melbourne’s weekend auction price increased again at the weekend, up from the previous weekend’s $755,750 to $768,438.
The weekend trend price remains 4.6 per cent higher than the $734,750 recorded during the same weekend in 2014.
Although reporting the lowest regional clearance rates over recent weekends, the inner east continues to record the highest median house auction price at $1.35 million, followed by the inner city $1.22 million, the inner south $1.18 million, the outer east $936,000, the north-east $728,750, the west $695,000, the north $633,000, and the south-east $586,000.
The market has finished spring in reasonable shape
Confidence remains robust, with well over 3000 auctions set to test the market over the last three weekends of the year – likely an all-time record number for December.
Low and falling interest rates energised the market in autumn, but higher mortgage rates over spring have moderated activity.
This week, the Reserve Bank meets for the final time this year and, reflecting better recent economic data, official rates are now likely to remain on hold for eight consecutive months until the bank meets again in February.