Sharp fall to year low result for Melbourne auction market

The Melbourne weekend auction market reported a sharp fall in activity at the weekend with the clearance rate falling to the lowest recorded this year.

The weekend result of 67.1 percent was well below last weekend’s 72.1 percent with the local market clearly tracking backwards since the Melbourne Cup weekend holiday.

A surge in late spring auctions numbers is impacting market activity with buyers increasingly spoiled for choice.

This weekend 1,154 properties were listed for auction, almost identical to the previous weekend’s 1,153 and well ahead of the 931 auctions conducted over the same weekend last year.

Next weekend will close off November with over 1300 auction excepted on the metro area.

Record numbers of auctions are also expected to test the market through December to the Xmas break.

Melbourne’s four weekend average clearance rate has fallen to 72.7 percent well down on the previous four weekend average result of 75.4 percent.

Trend auction activity continues to decline.

Melbourne’s outer east suburban auction market remains resilient recording clearly the highest clearance rate of all the regions at the weekend with 82.8 percent.

Next highest was the inner east with a rate of 71.0 percent followed by the inner south 70.2 percent, the north 66.2 percent and the north east with a clearance rate of 66.0 percent.

Notable sales in the outer east reported at the weekend included a 4 bedroom home at 50 Morotai Avenue Ashburton sold for $1,610,000 by Jellis Craig, another 4 bedroom home at 11 Alwyn Street Mitcham sold for $1,475,000 by Philip Webb Mitcham, a 4 bedroom home at 22 Alandale Road Blackburn sold for $1,450,000 by Jellis Craig and another 4 bedroom home at 77 Orchard Street Glen Waverley sold for $1,450,000 by Harcourts Glen Waverley

The most expensive property reported sold at auction at the weekend was a 4 bedroom home at 33 Hawthorn Grove Hawthorn sold for $6,125,000 by Jellis Craig.

The most affordable property reported sold at the weekend was a 3 bedroom unit at 7/9 Ostia Court Thomastown sold for $250,000 by Harcourts.

Melbourne’s economic performance continues to be an underlying drag on local housing market activity.

Latest ABS data reports that the Melbourne unemployment rate fell to 6.5 percent over October down from Septembers 6.8 percent. Although clearly an improvement, the October rate however remains well above the 6.0 percent recorded over October last year.

See all the auction results at http://www.homepriceguide.com.au/