Melbourne's auction clearance rate back up over Queen's Birthday weekend

Melbourne’s auction market recorded a boom-time result over the Queen’s Birthday holiday weekend that sharply reversed the weakening trend of the past month. 

Melbourne reported a strong clearance rate of 80.1 per cent at the weekend, which was well above the year-low 75.9 per cent recorded the previous weekend and well ahead of the 65.8 per cent recorded over the same holiday weekend last year.

The local market hosted typically low numbers of holiday listings at the weekend with just 267 auctions scheduled, which was well below the previous weekend’s 1047 auctions but similar to the 265 conducted over the Queen’s Birthday holiday weekend last year.

Melbourne recorded a median auction price of $745,000 on Saturday, which was again lower than the $823,500 reported over the previous weekend but 3.9 per cent higher than the $717,000 recorded over the same weekend last year. A total of $105.0 million was reported sold at auction in Melbourne at the weekend. The Melbourne market will be revitalised next weekend with over 950 homes set to be auctioned.

Melbourne home prices continue to rise strongly despite the fading impact from last year’s cuts to interest rates.  

Median asking prices for Melbourne private sale listings surged over the month of May, increasing by 4.9 per cent to a new record high $540,000. Melbourne monthly house prices have now risen by a remarkable 20.0 per cent over the past year

Asking prices for Melbourne units also increased strongly over May – up by 3.3 per cent to a new record high $368,000. Melbourne monthly unit prices have now risen by 11.8 per cent over the past year.

Low interest rates remain a key catalyst for higher Melbourne home prices. The Reserve Bank has predictably decided to again leave interest rates on hold over June at the record low 1.5 per cent – and where they have been since the cut in August last year.

Although rates are on hold, the national economy continues to underperform and may need more stimulus from lower rates unless it improves. Latest GDP data was clearly underwhelming and just scraped over the line with insipid March quarter growth of just 0.3 per cent. State Final Demand for Victoria, however, increased by 1.4 per cent over the March quarter – the best result of all the states.

Regional clearance rates were remarkably even again at the weekend with all areas sharing in the strong results for sellers – as has been the case for most of the year so far.

The inner city recorded the highest clearance rate on Saturday with a booming 90.9 per cent result, followed by the north 85.7 per cent, the inner south 84.6 per cent, the south east 83.3 per cent, the outer east 82.6 per cent, the north east 79.3 per cent, the inner east 77.8 per cent and the west just below with a clearance rate of 77.6 per cent.

Notable sales reported at the weekend included:

• A three-bedroom home at 3 Champion Street, Brighton sold by Hodges, for $2,655,000,
• Another three-bedroom home at 1 Ferncroft Avenue, Malvern East sold for $2,605,000 by Marshall White,
• A four-bedroom home at 18 Nelson Street, Sandringham sold for $2,337,000 by Buxton,
• Another four-bedroom home at 4 Clitheroe Court, Glen Iris sold for $1,830,000 by Jellis Craig and
• A three-bedroom home at 25 Cliff Street, South Yarra sold by Marshall White for $1,750,000.

The most expensive property reported sold at auction was a four-bedroom home at 1 Sussex Street, Brighton sold for $3,875,000 by Nick Johnstone. The most affordable property reported sold at the weekend was a two-bedroom unit at 14/250-254 Sunshine Avenue, Kealba sold for $261,000 by O’Brien Real Estate.