Melbourne Auction Market Booming - Buyer and Seller Bonanza

Melbourne has recorded its first boom-time clearance rate of the year despite a flood of sellers keen to take advantage of the current hot market conditions.

Melbourne recorded a clearance rate of 81.1% at the weekend which was slightly higher than the previous weekends 79.6% and well ahead of the 55.6% recorded over the same weekend last year.

Auction numbers continue to surge with 1123 reported listed on Saturday which is well ahead of last weekend’s 649 and significantly higher than the 949 auctioned over the same weekend last year.

Melbourne recorded a weekend median auction price of $879,000 which was higher than the previous weekend’s $826,500 and 14.9% higher than the same weekend last year’s $765,000.

Melbourne’s lower prices regions all produced boomtime clearance rates at the weekend indicating perhaps strong activity from first home buyers utilising the government first home buyer deposit scheme.

Top performer was the West with 89.1% followed closely by the North East at 88.9%.

Disappointing data released by the ABS this week with a higher unemployment rate and continuing low wages growth has increased the chances of a near-term interest rate cut by the Reserve Bank which will only fuel current generally strong house price growth.

Premium Melbourne

Port Phillip region reported Premium Melbourne’s highest clearance rate at the weekend at 81.6% followed by Bayside and Stonnington each with 80.0% 73.5%, and Boroondara 73.2%.

Boroondara however again recorded the highest median house auction price at $1,980,000 followed by Port Philip $1,588,000, Stonnington $1,490,000 and Bayside $1,432,000.

Comment

Melbourne’s home auction market moved into boom-time mode at the weekend with its first auction clearance rate above 80% for the year - despite a surge in listings.

Melbourne’s Premium suburban regions also recorded a sharp increase in clearance rates at the weekend with buyers competing strongly for a wider choice of properties.

Listings will continue to rise sharply over the next two Saturdays leading up to the Labour Day holidays weekend. But expect strong buyer activity to continue to produce high clearance rates – and higher prices. 

Dr Andrew Wilson is Chief Economist for My Housing Market


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