Article written by Dr Andrew Wilson from The Age accessed 05/09/17
It’s only the first weekend of the month and already the record has been broken for the most auctions listed and the most properties sold in June.
The Melbourne market continues to be deluged by a flood of auction listings with 1045 homes going under the hammer on Saturday – well ahead of the previous record of 955 set on June 18, 2016.
The city recorded a clearance rate of 75.9 per cent at the weekend, which was lower than the 76.6 per cent the previous weekend but higher than the 74.4 per cent recorded over the same weekend last year.
Saturday’s clearance rate was the second consecutive year low result, with the local market now tracking well below the 79.5 per cent average weekend rate recorded over the autumn selling season.
Melbourne recorded an overall auction clearance rate of 75.1 per cent in May, compared with 75.9 per cent recorded in April and 70.3 per cent reported in May last year.
Auction listings averaged 974 each weekend over May, which was well ahead of the 768 recorded in April and the 862 listed in May last year. The May listings result was also a record for that month. Over the first five months of this year 14,987 homes have been listed for auction in Melbourne, which is an increase of 14.3 per cent on the same period last year.
Melbourne recorded a median auction price of $900,000 in May, which was 9.7 per cent higher than the $820,500 reported in April and 10.4 per cent higher than May last year.
On Saturday, Melbourne recorded a median auction price of $823,500, which was again lower than the $839,000 reported over the previous weekend but 5.6 per cent higher than the $780,000 recorded over the same weekend last year. Reported auction sales totalled $469.8 million in Melbourne at the weekend. About 250 homes will be auctioned in Melbourne next Saturday as the market pauses for the Queen’s Birthday long weekend holiday.
Regional clearances rates were more mixed at the weekend with outer suburban, lower-priced areas clearly the top performers and lower results for inner suburban, higher-priced areas, indicating the emergence of the typical winter pattern of results.
The south-east recorded the highest clearance rate on Saturday with a booming 86.7 per cent result followed by the west at 84.2 per cent and the highest sales at 117, the north 81.8 per cent, the outer east 80.7 per cent, the north-east 78.6 per cent, the inner east 73.6 per cent, the inner city 71.2 per cent and the inner south with a still solid clearance rate of 70.2 per cent.