This article was first published by Dr Andrew Wilson on 18th Sept 2016 via domain.com.au | Image: Auctioneer Russell Cambridge of Biggin and Scott Real Estate in action on a weekend that saw a 79.5 per cent clearance rate across Melbourne. Photo: Paul Jeffers
The early-spring home auction market continues to rise in Melbourne, producing yet another strong result for sellers at the weekend.
Melbourne recorded a clearance rate of 79.5 per cent on Saturday, which was ahead of the 78.4 per cent reported over the previous weekend and well up on the 74.5 per cent recorded over the same weekend last year.
Saturday’s result was the highest reported for two months, with sellers enjoying the best spring market conditions for years.
A shortage of auction listings is contributing to higher clearance rates, with buyers competing fiercely for available stock. Just 792 auctions were conducted on Saturday, which was below the previous weekend’s 846 and again well below the 995 conducted over the same weekend last year.
Just 2354 homes have been auctioned on weekends over September so far, which is 555 fewer than the same period last year — a fall of 19.1 per cent. Next weekend’s typical pre-grand final surge in auctions will also be below par compared to previous years, with less than 1000 auctions likely to be conducted.
Melbourne’s regions recorded another weekend of consistent auction results, with most suburbs producing strong results for sellers. Five regions reported clearance rates above 80 per cent, led by the inner south with 84.7 per cent and the highest sales at 83. The next highest was the north-east with 84.5 per cent, followed by the west with 83.5 per cent, the inner city with 82.6 per cent and the north with 82 per cent, the outer east with 76 per cent, the inner east with 74.5 per cent and the south-east with 67.6 per cent.
Notable sales reported at the weekend included:
- a four-bedroom home at 50-52 Bay Street, Brighton, sold by Marshall White/Buxton for $4,925,000;
- a five-bedroom home at 29 Thomas Street, Hampton, sold for $3,075,000 by Marshall White;
- a three-bedroom home at 1 Maitland Street, Glen Iris, sold by Jellis Craig for $2,825,000;
- a four-bedroom home at 24 Haydens Road, Beaumaris, sold for $2,575,000 by Buxton;
- a four-bedroom home at 83 Normanby Road, Kew, sold by Nelson Alexander for $2,513,000.
The most expensive property reported sold at auction was a six-bedroom home at 367 Dandenong Road, Armadale, sold for $5,525,000 by Marshall White.
The most affordable property reported sold at the weekend was a one-bedroom unit at 6/13 Ulupna Road, Ormond, sold for $296,000 by Thomson.
Melbourne recorded a median auction price of $865,000 on Saturday, which was lower than the $870,000 reported last weekend and 6 per cent higher than the $816,000 recorded over the same weekend last year. A total of $407.6 million was reported sold at auction in Melbourne at the weekend.
A strengthening Melbourne spring housing market will translate into rising prices, although the growth rates are unlikely to match last year’s record levels. Rising house prices are unwelcomed by first-home buyers struggling to get into the market, but the latest Australian of Bureau Statistics data reveals that first-home buyer numbers are rising in Victoria, with an increase of 3.3 per cent over the first seven months of this year compared to the same period last year.
A stronger economy is also contributing to the rising housing market, with the ABS reporting that the Victorian seasonally adjusted unemployment rate fell to 5.5 per cent over August, the lowest local result since November 2012.