Melbourne auction preview: Clearance rate stays high as auction numbers improve

Melbourne is set for another big auction weekend, with more than 900 homes to go under the hammer on Saturday.

It comes after a quiet Derby Day, where punters still shelled out for properties despite the spring racing carnival spooking sellers.

Domain research analyst Eliza Owen said Saturday would give a good indication of where the market was at, better than on recent weekends with a relatively low or high number of auctions.

“This weekend we have 928 auctions scheduled across Melbourne,” she said. “The past few weeks it’s been difficult to gauge the market as clearly, due to low auction volumes last Saturday.”

Some agents had not been disclosing auction results, clouding analysts’ ability to assess the state of the market, Ms Owen said.

“We’ve also seen below-average reporting rates the past couple of weeks,” she said. “I can understand that on the 26th [of October] because it was a Super Saturday.

“Last week was a low-volume weekend and we still have a low reporting rate of 70 per cent.”

The clearance rate was still high over the past four weeks, Ms Owen said.

“The average clearance rate for the past four weeks is sitting at about 72 per cent which indicates there’s still strong demand,” she said. “Seventeen per cent are sold before they head to auction. In the context of rising clearance rates, it signals buyers are keen to get in ahead of the competition and secure something before auction.”

SOLD - $730,000

4/9 Jones Street, Thornbury VIC 3071

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Jellis Craig Northcote agent Nigel Harry said a surge in auction listings was unlikely this late in the year, despite the breadth of positive market indicators.

“There’s very little likelihood of much coming into the market between now and Christmas,” he said. “We are talking to prospective vendors about auctions for February and March, some of them are open to maybe selling off-market through the Christmas period.

“The compound effect of week after week of positive news has vendors thinking, ‘Yeah now is a good time to be selling,’ but they’ve left their run a bit late.”

He is auctioning a recently built Thornbury home on Saturday, and says he is expecting competition for it from investors and home buyers alike.

“It’s a seven-year-old townhouse, two-bedroom and it’s one of five,” Mr Harry said. “It’s owner-occupied and a small boutique development. It has a lovely feel about it.”

SOLD - $822,000

1/66 Montague Street, South Melbourne VIC 3205

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Hocking Stuart Albert Park agent Stephanie Evans is set to sell a dual-level apartment in South Melbourne on Saturday. She said affordable properties were popular in her patch.

“There’s a bit of a shortage of properties on the market which is increasing sale prices and bidding at auctions,” she said. “We’re seeing that with single-fronted houses and anything close to $1 million.

“The larger houses are selling but we don’t have as many buyers looking to buy those.”