Melbourne auction market holds strong for sellers

Melbourne’s auction result was encouraging for sellers trying to make the most of the boom, with strong sales, despite 1250 homes listed to go under the hammer.

Overall, a healthy clearance rate of 74.2 per cent was recorded – similar to results reported over the past month, indicating a market that might be forming a base after showing signs of waning. It remained stronger than during the same weekend in 2014, with more than 300 extra auctions.

High numbers of auctions will continue to test the market over the remainder of the spring season. Sellers should be watching the pre-Melbourne Cup Day long weekend carefully, with the Super Saturday on October 24 set to challenge the all-time record number of auctions conducted in Melbourne.

The Reserve Bank met for its regular monthly meeting last week and decided, as expected, to leave official interest rates on hold over October. Although rates have been on hold for five consecutive months, further indications of deterioration in local and international economic activity and continued volatility in sharemarkets might bring a Melbourne Cup Day rate cut into play next month.

Clearance rates on Saturday were generally similar between suburban regions and price ranges – reflecting the recent even nature of Melbourne housing market activity.  

Melbourne’s trend auction price fell again at the weekend, down from the previous weekend’s $793,222 to $783,250. The auction price trend has now fallen over three consecutive weekends, but remains 10.5 per cent higher than the $706,625 recorded during the same weekend in 2014.

Over the weekend, the best result was for a four-bedroom home at 4 Crossakiel Court, Hawthorn, sold for $3.56 million by Jellis Craig. The most affordable property was a two-bedroom unit at 2/28 Codrington Street, Cranbourne, sold for $220,000 by Hodges.

Notable sales reported at the weekend included a five-bedroom home at 371 Belmore Road, Balwyn North, sold for $3.2 million by Noel Jones; another five-bedroom home at 40 Kerrie Road, Glen Waverley, sold by Ray White Glen Waverley for $3.05 million; a five-bedroom home at 38 Hood Street, Balwyn North, sold by Fletchers for $3.02 million; a four-bedroom home at 2 Bennett Street, Balwyn, sold for $2.91 million by Hocking Stuart; and a three-bedroom home at 26 Friendship Square, Cheltenham, sold for $2.9 million by O’Brien​ Real Estate Mentone. 

For a list of weekend auction results in Melbourne click here.

Dr Andrew Wilson is Domain Group’s senior economist.