Melbourne’s auction market bounced back hard on Saturday after last weekend’s year-low result and recorded its highest clearance rate for the season so far.
Melbourne reported a clearance rate of 78.3 per cent at the weekend, significantly higher than the previous weekend’s 71.7 per cent result and the highest recorded since June 10.
Saturday’s result was also higher than the 77.7 per cent reported over the same weekend last year.
On Saturday 821 homes were scheduled for auction, similar to the previous weekend’s 823 auctions which was the highest number auctioned for nearly two months. Auctions were again well ahead of the 657 listed over the same weekend last year and as the spring selling season gathers momentum 900 auctions are set for next weekend.
Melbourne recorded a median auction price of $882,150 on Saturday which was lower than the $898,000 reported over the previous weekend but 5.6 per cent higher than the $835,000 recorded over the same weekend last year. A total of $424.3 million of property was sold at auction in Melbourne at the weekend.
First home buyer activity in Victoria remains relatively low reflecting recent strong price growth in the Melbourne housing market. Latest data from the ABS reported that 1528 first home buyer loans were approved over June in Victoria, a fall of 2.6 per cent compared to the previous month.
Victorian first home buyer loan numbers have now fallen 5.3 per cent over the first six months of this year compared to the same period last year and account for a record-low 9.2 per cent of all residential lending approvals in the state. This is the second-lowest market share of all the states, with only NSW lower at just 4.6 per cent.
Recently lower first home buyer numbers in Victoria may reflect stamp duty reductions for this group that came into force on July 1 with buyers holding back until then. These new benefits will likely result in higher numbers of first home buyers although the prospect of sharply higher house prices will act to offset activity from the group over the longer-term.
Melbourne’s northern suburbs are clearly booming and continue to produce super-strong results for most sellers. Following last Saturday’s lower results, clearance rates in the higher-priced, inner-suburban regions improved, although the inner east remained a clear under-performer but on significantly higher listings.
The north-east produced a remarkable result at the weekend with an 89 per cent clearance rate with 81 properties sold from 91 reported auctions. Next highest was the north also strong with 85.9 per cent followed by the west 85.2 per cent, the inner city 77.3 per cent, the inner south 77.2 per cent, the outer east 74.7 per cent, the south-east 73.3 per cent and the inner east well below the rest at 67.4 per cent.
Notable sales reported at the weekend included:
The most expensive property reported sold at auction was a four-bedroom home at 37 Wellington Street, Kew, sold for $4 million by Marshall White. The most affordable property reported sold at the weekend was a one-bedroom unit at 47/145 Canterbury Road, Toorak, sold for $250,000 by LITTLE Real Estate.
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