Melbourne auctions surge in 15 per cent increase on last year

Although clearance rates and volumes were the lowest they’ve been for two months, so bullish is the Melbourne auction market that the weekend result was still a good one for sellers.

Melbourne recorded a clearance rate of 78.7 per cent at the weekend which was lower than the 81.7 per cent recorded the previous weekend but still well ahead of the 73.1 per cent recorded over the same weekend last year.

In a clear sign that sellers are making the most of conditions, 11,115 Melbourne homes were auctioned over the first four months of this year which was an increase of 15.1 per cent compared to the 9659 listed over the same period last year.

The Melbourne home auction market surged over April despite the distractions of holidays recording an overall strong clearance rate of 78.1 per cent. This was well ahead of the 75.3 per cent recorded over the previous month and significantly higher than the 71.6 per cent recorded over April last year.

The Melbourne median auction price, however, fell over April, reflecting a lower proportion of higher-priced suburbs listed over the holiday month. The median was down to $825,000 compared to March $885,000 but remained well ahead of the $755,000 median auction price recorded over April last year.

Auction listings were also lower at the weekend in Melbourne with 655 homes scheduled to go under the hammer which was well below the previous weekend’s 1047 listings and also lower than the 909 listed over the same weekend last year. The local market however will bounce back hard next weekend with well over 900 auctions listed.

Melbourne recorded a median auction price of $784,750 on Saturday which was lower than the $789,000 reported over the previous weekend and 1.9 per cent lower than the $800,000 recorded over the same weekend last year. A total of $302.9 million was reported sold at auction in Melbourne at the weekend.

Auction clearance rates have averaged 79.8 per cent so far this year and Saturday’s result was the lowest since the 78.3 per cent recorded on March 18.

Over recent months governments and policymakers have directed significant attention to solving perceived housing market imbalances. The clear risk however is that ad-hoc, one-size-fits-all policies may create or exacerbate stress in local markets and market segments.

Monetary policy continues its weighty focus on supposed generalised housing market stress with the Reserve Bank leaving rates on hold again this month in hopeful anticipation of an economic revival sooner rather than later.

This week it will be the turn of fiscal policy to address the much-promoted woes of the housing market through the federal budget.

Melbourne’s north east continues to produce the highest regional clearance rates with another strong 89.0 per cent recorded at the weekend. Next highest was the also consistently strong north with 86.5 per cent followed by the west 81.6 per cent and again with the highest sales at 84, the south east 80.8 per cent, the inner south 77.9 per cent, the outer east 77.6 per cent, the inner east 73.1 per cent and the inner city with a clearance rate of 68.2 per cent.

Notable sales reported at the weekend included:

• A three-bedroom home at 8 Tyrone Street, Camberwell sold by Marshall White for $2,570,000,
• A four-bedroom home at 4 Mandall Avenue, Ivanhoe sold for $2,535,000 by Miles Real Estate,
• A three-bedroom home at 15 Littlewood Street, Hampton sold by Hodges for $2,513,000,
• And another three-bedroom home at 32 Chadstone Road, Malvern East sold by Fletchers for $2,250,000.

The most expensive property reported sold at auction was a five-bedroom home at 12 Golden Grove, Glen Waverley sold for $2,700,000 by Ray White. The most affordable property reported sold at the weekend was a one-bedroom unit at 8/2-12 Baxter Avenue, Chelsea sold for $273,000 by Thomson Property.