Melbourne’s auction clearance rate weakened sharply at the weekend despite the interest rate cut announced last week by the Reserve Bank.
Melbourne recorded a clearance rate of 67.2 percent on Saturday – well down on the previous weekend’s 72.7 percent and also well down on the 75.6 percent recorded over the same weekend last year.
A significant rise in auction numbers from the previous weekends unusually quiet season-opener has provided a more robust indication of the underlying nature of market activity.
188 homes were listed for auction compared to just 59 auctions the previous weekend but well below the 258 auction listed over the same weekend last year.
An early trend is emerging of lower auction listings in Melbourne this year – another indication of weakening market activity.
The inner city and north east each recorded strong clearance rates of 81.8 percent at the weekend although from low listing numbers.
Next best was the inner south with 80 percent, followed by the south east 78.6 percent, the outer east 70.7 percent with the highest sales at 29, the inner east 66.7 percent, the north 60 percent and the west with a clearance rate of 44.4 percent.
Notable sales reported at the weekend included…
A 3 bedroom home at 32 Sherwood Road Mount Waverley sold for $1,415,000 by Philip Webb Doncaster, a 4 bedroom home at 41 Arlington Drive Glen Waverley sold by Harcourts Glen Waverley for $1,406,000, another 4 bedroom home at 13 Jack Street Mount Waverley sold by Buxton for $1,401,000, a 3 bedroom home at 71 O’Farrell Street Yarraville sold for $1,295,000 by Sweeney Yarraville and a 5 bedroom home at 17 Stableford Avenue Glen Waverley sold by Ray White Glen Waverley for $1,151,000.
The most expensive property reported sold at auction at the weekend was a 2 bedroom home at 6 Bishop Court Mount Waverley sold by Jellis Craig for $1,480,000.
The most affordable property reported sold at the weekend was a 2 bedroom unit at 4/32 Birdwood Street Frankston sold for $215,000 by Century 21 Home Port.
For a list of weekend auction results in Melbourne click here Melbourne auction results February 7.
Melbourne’s housing market weakened over late spring last year with clearance rates falling to year lows and continuing modest house price growth.
Listings – particularly from the inner suburbs – will rise significantly over coming weekends providing more robust insights into overall market activity – but early indications unsurprisingly show the market starting 2015 as it finished 2014 – modestly.
Lower interest rates are unlikely to stimulate market activity in the short-term with affordability improved only marginally and any benefits clearly offset by decade high unemployment levels, concerns over job security and chronically low incomes and profit growth.