Late autumn surge hits Melbourne market with 1120 homes auctioned

Melbourne’s auction market almost cleared the May listings record on the weekend, with a surge of listings unable to bring down the strong auction clearance rate maintained this year.

On Saturday 1120 homes were listed to go under the hammer, just below the record May weekend auction listings of 1147 set in 2014.

This was well ahead of the previous weekends 933 auctions and also well ahead of the 759 listed over the same weekend last year.

In a sign that demand is strong as ever, the clearance rate was 79.7 per cent – higher than the 78.3 per cent recorded the previous weekend and remaining well ahead of the 73.8 per cent recorded over the same weekend last year.

Next weekend will provide another record-level May Saturday of auctions with again well over 1100 listings likely.

This weekend’s auction result follows the ABS reporting that seasonally adjusted national retail sales fell again over March following the fall recorded over February. This was the first consecutive monthly decline in national retail turnover since November 2012 and reflects the impact on consumers of record low incomes growth, higher unemployment and significant under-employment.

With a clearly continuing underperforming economy and the growing prospect of negative economic growth over the March quarter, together with the likelihood of more out of cycle mortgage rate increases from the banks, further stimulus from the Reserve Bank from an official rate cut remains on the cards.

Melbourne recorded yet another remarkably consistent weekend for regional auction results with a narrow spread of results from highest to lowest.

Melbourne recorded a median auction price of $891,000 on Saturday which was significantly higher than the $783,250 reported over the previous weekend and 17.2 per cent higher than the $760,000 recorded over the same weekend last year. A total of $563.8 million worth of property was sold.

Melbourne’s northern suburbs produced another bullish result to again lead the regions with a clearance rate of 86.8 per cent. Next highest was the inner east with 82.6 per cent followed by the south east 82.1 per cent, the north east 82.0 per cent, the west 81.4 per cent and the highest reported sales at 127, the outer east 78.5 per cent, the inner city 77.4 per cent and the outer south with an auction clearance rate at the weekend of 77.3 per cent.

Notable sales reported at the weekend included:

• A four-bedroom home at 127 Gipps Street, East Melbourne sold for $4,275,000 by Caine Real Estate.
• Another four-bedroom home at 9 Sunnyside Avenue, Camberwell sold by Jellis Craig, for $3,850,000.
• A three-bedroom home at 3A Monomeath Avenue, Toorak sold for $3,805,000 by RT Edgar.
• A four-bedroom home at 43-45 Kokaribb Road, Carnegie sold for $3,500,000 by Savills Melbourne.
• And a three-bedroom home at 65 Caroline Street, South Yarra sold by Marshall White for $3,475,000.

The most expensive property reported sold at auction was a four-bedroom home at 28 Kintore Street, Camberwell sold for $5,020,000 by Jellis Craig. The most affordable property reported sold at the weekend was a two-bedroom home at 1/18 Toolern Street, Melton South sold for $251,000 by Raine & Horne.