Sellers rule Melbourne winter auction market

The Melbourne home auction market has ended winter with clearances rates still positive for sellers despite listings remaining significantly higher than recorded over winter last year  and with the clear prospect of a vibrant spring selling season ahead in what has emerged as the nation’s strongest housing market.

Melbourne reported an auction clearance rate of 70.9 per cent over winter which was lower than the 75.2 per cent averaged over autumn and similar to the 71.7 per cent recorded over winter last year.

9,868 auctions were conducted over winter which was lower than the 11,810 auctioned over autumn but well ahead of the 7,958 or 24.0 per cent higher than were conducted over winter last year.

Regional clearance rates were generally lower over winter compared to autumn and also lower compared to the results of winter last year. The exceptions were the south west with winter rates above autumn results and the south east, the north east and the outer east that each recorded winter clearances rates higher than last year’s winter results.

The north east and the outer east were the top winter performers with 75.2 per cent and 73.7 respectively with the lowest rates recorded by the inner east 67.0 per cent and the inner city with 66.8 per cent.

Regional auction numbers were well ahead of last winter’s listings with the west the most popular with 2014 followed by the north east with 1367 and the inner south with 1287. The west and the south east recorded the highest growth in auction listings this winter compared to winter last year, up sharply by 42.4 per cent and 30.0 per cent respectively.

Although Melbourne auction numbers will continue to rise through spring and likely remain higher than last year’s totals, weekend clearance rates are set to continue above 70 per cent despite the waning impact of the lower interest rate energy driven by last year’s rate cuts.

Higher numbers of first home buyers and investors, and surging migration will keep demand ahead of supply with Melbourne still offering affordability advantages particularly compared to the high-priced Sydney market.

Melbourne sellers overall will continue to hold the upper hand with outer suburban markets doing best but all areas maintaining the positive results of winter.

Andrew Wilson is Domain Group Chief Economist Twitter@DocAndrewWilson join on LinkedIn and Facebook at MyHousingMarket