The Melbourne home auction market is going from strength to strength, recording another robust clearance rate, despite the challenge of what was clearly its biggest day of auctions for the year so far.
The local market continues to track higher than last spring with buyer and seller confidence clearly starting the year off on the front foot.
Melbourne reported a clearance rate of 77.9 per cent on Saturday, which was higher than the 75.0 per cent recorded the previous weekend and also more than the 77.3 per cent recorded over the same weekend last year.
Confidence is catching on with recent results certain to encourage more sellers into the marketplace through autumn.
The median auction price recorded on Saturday was $750,000, higher than the previous weekend’s $710,000, but 2.3 per cent lower than the $767,500 recorded over the same weekend last year.
The market heads into autumn with solid momentum in what has emerged as clearly a solid sellers’ market, with a total of $389.2 million reported sold at auction over the weekend.
This weekend’s result was doubly noteworthy given the surge in auction numbers, particularly in inner suburban areas.
There were 930 homes listed to go under the hammer on Saturday – nearly twice the 466 auctioned the previous weekend and higher than the 906 listed over the same weekend last year.
The high numbers of inner suburban auctions tested the market, but Saturday’s result was particularly significant for the strong results these regions achieved.
The south east recorded the highest clearance rate at the weekend with 86.4 per cent, followed by the inner east 82.9 per cent, the inner south 80.8 per cent and the outer east 79.5 per cent.
The north east had a clearance rate of 78.8 per cent, while the inner city was at 78.6 per cent with the highest sales at 99.
The west had a clearance rate of 71.6 per cent and the north followed with 70.8 per cent.
Similar to last year’s trend, the market continues to produce relatively consistent results between regions with all areas currently favouring sellers.
Notable sales reported at the weekend included two homes in Canterbury: A five bedroom home at 32 Alexandra Avenue Canterbury, which sold by Marshall White for $3,805,000 and another five bedroom home at 116 Mont Albert Road, which sold for $3,350,000 by Fletchers.
A four bedroom home at 25 Alfred Street Kew sold for $3,250,000 by Kay and Burton, another four bedroom home at 110 New Street Brighton sold for $2,950,000 by Marshall White and a two bedroom home at 9 Agnes Street Mont Albert sold by Philip Webb Doncaster for $2,910,000.
The most expensive property reported sold at auction at the weekend was a five bedroom home at 78 Sackville Street Kew sold for $5,710,000 by Jellis Craig.
The most affordable property reported sold at the weekend was a one bedroom unit at 16/6 Garnet Street Brunswick sold for $216,000 by Nelson Alexander.
Next weekend presents another strong challenge for the local market with around 1200 homes expected to go under the hammer, but proposed changes to negative gearing for residential investors is set to only fuel demand with early signs of rising buyer activity from this group.
Click here for a list of weekend auction results in Melbourne
SUBSCRIBE & DON'T MISS A SINGLE EPISODE OF MICHAEL YARDNEY'S PODCAST
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
PREFER TO SUBSCRIBE VIA EMAIL?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.