The Melbourne market commenced winter in typically resilient form, recording yet another robust clearance rate despite distractions from the weather and the federal election campaign.
Melbourne reported a clearance rate of 74.4 per cent on Saturday, just below the 75.2 per cent recorded over the previous weekend, but well below the 84.5 per cent recorded over the same weekend last year.
Auction numbers were down with 841 listings compared to last weekend’s 1067 – although higher than the 241 auctioned over the same weekend last year, which was impacted by the Queen’s Birthday holiday break.
The northern suburbs continue to generally lead the regional results recording a number of boom-time 80 per cent plus clearance rates over recent Saturdays.
The eastern suburbs, however, remain regional underperformers, now consistently recording the lowest rates.
The most expensive property reported sold at auction was a four-bedroom home at 36-38 Hotham Street in East Melbourne, which sold for $5.1 million by Caine Real Estate.
The most affordable property reported sold at the weekend was a one-bedroom unit at 10/2-4 Elizabeth Street in Braybrook, which sold for $240,000 by Pagan Real Estate.
Melbourne recorded a median auction price of $780,000, which was below the $821,000 recorded the weekend before.
Saturday’s median was 13 per cent higher than the $690,000 recorded over the same weekend last year.
A total of $354 million was reported sold at auction in Melbourne at the weekend.
Melbourne has commenced the winter auction season with another weekend of robust results and reflecting the remarkable consistency of the market so far this year.
Overall clearance rates increased over May to 72.5 per cent compared to the April result of 71.6 per cent.
The median auction price increased sharply from $755,000 over April to $820,000 over May reflecting to some degree a larger proportion of higher prices home listed following the holiday distractions of April.
In the first five months of this year 12,700 auctions have been conducted, with a marginal fall of just 1.4 per cent compared to the 12,877 listed over the same period last year.
Rising buyer activity in Melbourne reflects the impact of low and falling interest rates and perhaps the reinvigoration of the investor market driven by the prospect of possible changes to property taxes.
Despite the near-certainty that rates will remain on hold over June following the Reserve Bank’s meeting this week, the likelihood for a near-term cut remains.
This was reinforced with more signs of weakening inflation in the latest ABS GDP data for the March quarter released last week.
A predictably good start to the Melbourne winter auction market with the prospects of a resilient season ahead.
The market is set for pause mode next weekend for the Queen’s Birthday holiday break with just 250 auctions likely to be conducted.
For a full list of the Melbourne auction results click here
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