Melbourne records 45 per cent more July auctions than last year

The Melbourne auction market ended July with yet another strong result for sellers with prices charging on through the usually quieter mid-winter auction season.

Melbourne auction clearance rates have averaged 74.8 per cent over July which reflects continuing strong demand for property from mid-year buyers.

Over July 3502 weekend auctions have been conducted in Melbourne, which is 45.5 per cent higher than the 2407 homes auctioned over July weekends last year.

Melbourne reported a clearance rate of 76.2 per cent on Saturday, which was higher than the previous weekend’s 74.9 per cent result and higher than the 75.7 per cent reported over the same weekend last year.

The weekend’s higher clearance rate was recorded despite a surge in auctions – with 776 homes listed to go under the hammer. Saturday’s result was well ahead of the 684 listed the previous weekend and significantly higher again than the 676 auctioned over the same weekend last year.

Over 700 auctions are set to be conducted again in Melbourne next weekend to open the August market.

Melbourne recorded a median auction price of $740,000 on Saturday, which was the same as reported over the previous weekend but 1.3 per cent lower than the $750,000 recorded over the same weekend last year. A total of $317.3m was reported sold at auction in Melbourne at the weekend.

• Related: Click here for Saturday’s auction results
• Related: Click here for the Market Snapshot
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This week the Reserve Bank meets to decide the direction of official interest rates over August, with rates likely to remain at the current 1.5 per cent for the 12th consecutive month. Latest economic data remains mixed with the ABS national June jobless rate at a four-year low but rates in Melbourne and Brisbane increasing sharply over the past year and ae above 6.0 per cent.

The ABS June quarter headline inflation result was disappointing, increasing by just 0.2 per cent over the quarter and up by 1.9 per cent over the year – below the RBA’s notional target range of 2 to 3 per cent. The recent trend of underlying inflation, however, has improved marginally although remaining at low levels.

The recent surge in the Australian dollar would also concern the RBA, following incorrect speculation about increases in local interest rates being sustained by a lower US dollar. Nonetheless the Reserve Bank is likely to persist with its recent medium-term view of economic activity and likely keep rates on hold for the rest of the year.

Outer suburban areas were again the top performers at the weekend, supported by increased activity by first home buyers in the budget market following recent changes to the stamp duty payable by this group.

The south-east recorded a boom time clearance rate of 87.0 per cent at the weekend, followed by the west with a similarly strong 85.7 per cent result. Next highest was the consistently strong north with 81.9 per cent, followed by a resurgent outer-east with 80.3 per cent, the inner-south 75.7 per cent, the north-east 71.1 per cent, the inner city 69.6 per cent and the inner-east again the under-performer with an auction clearance rate of 63.9 per cent.

Notable sales reported at the weekend included:

• A four-bedroom home at 18 Carlsberg Road Eaglemont sold by Miles Real Estate for $3,300,000
• A four-bedroom home at 11 Raheen Drive Kew sold for $3,015,000 by Jellis Craig
• A three-bedroom home at 178 Princes Street Port Melbourne sold for $2,730,000 by Chisholm and Gamon
• Another three-bedroom home at 33 Weeroona Road Murrumbeena sold for $1,965,000 by Ray White
• A four-bedroom home at 23 Hillside Parade Glen Iris sold by J A Cain for $1,908,000.

The most expensive property reported sold at auction was a five bedroom home at 27 Burroughs Road Balwyn sold for $3,812,000 by VICProp – Kew. The most affordable property reported sold at the weekend was a one-bedroom unit at 5/35 Kingsville Street Kingsville sold for $216,000 by Jas Stephens Real Estate.