Melbourne auctions: market tracks backward but still up on 2014

The Melbourne auction market tracked backwards at the weekend following a month of strong results.

Melbourne recorded a 76 per cent clearance rate on Saturday, down from the 79.9 per cent recorded the previous weekend, but again just above the 75.3 per cent rate of the same weekend last year. Saturday’s result was the second-lowest weekend rate for the year and reverses the recent trend of rising clearance rates.

Higher listing numbers may have been a factor in Saturday’s weaker result with 838 homes listed to go under the hammer compared to 783 the previous weekend. Record high late winter auction numbers have however proved to be no barrier to strong clearance rates over previous weekends with 3218 Saturday auction listings over August this year so far compared to 2419 over the same period last year – an increase of 799 or 33 per cent.

Next weekend Melbourne will close out an unprecedented August for auctions with another monthly record with over 1000 homes set to go under the hammer.

Regional results provided some surprises at the weekend that clearly contributed to the lower overall clearance rate. The outer east relinquished its usual top spot, recording the lowest clearance rate of all the regions on Saturday and one of the lowest it has recorded for some time.

The highest regional clearance rate reported on the weekend was the north-east with 80.4 per cent, followed by the inner east 79.8 per cent, the north 78.8 per cent, the south east 76.5 per cent, the inner south 75.5 per cent, the inner city 74.3 per cent, the west 74.1 per cent and the outer east last with 71.6 per cent with 68 sales from 95 reported auctions. Regional results were again reasonably close to each other reflecting the current consistency of the market through prices, ranges and locations.

Notable sales reported at the weekend included a six-bedroom home at 5 Mawson Street, Kew, which sold for $4,695,000 by Jellis Craig; a four bedroom home at 100 Lewisham Road North, Prahran, sold for $3.51 million by Marshall White, a three bedroom home at 1 Ultimo Court, Toorak, also sold by Marshall White for $3.31 million, a five bedroom home at 10 Beach Road, Beaumaris, sold for $3.2 million  by Buxton and a three bedroom home at 9 Armfield Street, Brighton, also sold by Buxton for $3,025,000.

The most expensive property reported sold at auction at the weekend was a three bedroom home at 17 Marriott Parade, Glen Waverley; sold for $6 million by Barry Plant. The most affordable property reported sold at the weekend was a three bedroom home at 9 Granholm Grove, Melton West; sold for $225,000 by PRD Nationwide Melton.

Although the clearance rate weakened at the weekend, auction prices continue to rise with Saturday’s monthly median trend auction price of $792,000 up from the $772,375 recorded the previous Saturday.

Melbourne’s latest weekend trend auction price remains 10.7 per cent higher than the $715,188 recorded over the same Saturday last year.