This article was first published: Dr Andrew Wilson via domain.com.au
Photo: Jesse Marlow “Auctioneer Greg Hocking, of Greg Hocking Holdsworth Real Estate”
The Melbourne home auction market reported another robust clearance rate on Saturday, with enthusiastic buyers continuing to compete fiercely for the typically scarce mid-winter offering.
Although Saturday’s clearance rate of 74.2 per cent was well down on the previous weekend’s boom-time result of 80.2 per cent, it nonetheless reflects a continuance of the positive market conditions for sellers, which have been characteristic of the Melbourne winter market. Saturday’s result was also similar to the 76.4 per cent recorded over the same weekend last year.
The Melbourne market again hosted relatively low auction numbers on Saturday, with just 476 homes listed to go under the hammer. This was below the previous weekend’s 515 listings and significantly lower than the 745 auctioned over the same weekend last year. Saturday’s offerings, however, were the trough of the winter market, with auction numbers now set to rise through to the spring selling season.
After logging some lower results recently, Melbourne’s inner east suburban region bounced back strongly at the weekend to record the highest regional clearance rate, with an exceptionally strong 87.9 per cent. The next highest was the north with 79.5 per cent, followed by the inner city with 77.8 per cent, the west with 76.5 per cent and the highest number of sales at 52, the north-east with 74.1 per cent, the inner south with 73.7 per cent, the outer east with 65.9 per cent and the south-east with a clearance rate of 65.2 per cent.
The most expensive property reported sold at auction was a six-bedroom home at 1 Prowse Avenue, Balwyn, which sold for $4,600,000 by Philip Webb. The most affordable property reported sold at the weekend was a two-bedroom unit at 4/24 Fashion Parade, Broadmeadows, which sold for $255,000 by Nelson Alexander.
Melbourne recorded a median auction price of $755,000 on Saturday, which was higher than the $750,000 reported last weekend and 6.6 per cent higher than the $708,500 recorded over the same weekend last year. A total of $204.6 million was reported sold at auction in Melbourne at the weekend.
There is no surprise that an overall robust auction market through autumn and into winter has translated into solid prices growth for Melbourne. The latest Domain data reports that the Melbourne median house price increased by 1.5 per cent over the June quarter to a new record high of $740,995. The Melbourne median house price has remarkably increased over 15 consecutive quarters since the September quarter 2012.
The Melbourne median house price has increased by 7.4 per cent over the past year, which was clearly the highest rate of all the capitals. The next best was Canberra at 4.8 per cent.
Melbourne unit prices increased strongly over the June quarter, rising by 3.5 per cent to a median of $450,933. Annually, units grew 2.7 per cent.
Lower interest rates and increased activity by investors have supported Melbourne’s house price growth over the June quarter, with the local market remaining clearly the strongest and most consistent performer of all the capitals over the past year.
With the prospect of further falls in interest rates, a solid local economy and surging migration, the likelihood is that Melbourne prices growth will continue through the remainder of the year.