Melbourne’s mid-winter home auction market recorded another solid result for sellers at the weekend with a 74.3 percent clearance rate - the highest weekend result recorded so far over July.
Auction sales levels in Melbourne are holding firm over winter with consistent results being reported each weekend. Auction clearance rates have averaged 73.2 percent since the Queen’s Birthday weekend compared to break 67.1 percent over the same period a year ago.
High winter rates have been recorded despite higher listing numbers with 3780 properties going under the hammer over the past 6 weekends compared to 3257 auctioned over the corresponding period a year ago.
Auction numbers have increased over recent weekends as the market now moves through the mid-winter trough. This weekend 548 homes were auctioned compared to 478 last weekend. Auction number will continue to rise and test the market over the coming weekends through to spring.
Melbourne’s inner city suburban region produced the best result at the weekend with a strong auction clearance rate of 87.9 percent. This was closely followed by the north with 87.8 percent, the inner east 84.6 percent, the north east 72.1 percent, the west 71.4 percent and the inner south with an auction clearance rate at the weekend of 70.7 percent.
Standout sales results in the inner city included a 4 bedroom home at 6 Survey Street Richmond sold for $1,766,000 by Collins Simms, a 3 bedroom home at 35 Seacombe Street Fitzroy North sold for $1,545,000 by Chambers Real Estate, a 4 bedroom home at 69 Bendigo Street Richmond sold for $1,516,000 by RT Edgar and a 3 bedroom unit at 11/55-59 Moor Street Fitzroy sold for $1,410,000 by Jellis Craig.
The most expensive property reported sold at auction at the weekend was a 4 bedroom home at 30 Dawson Avenue Brighton sold for $4,680,000 by Buxton. The most affordable property reported sold at the weekend was a 2 bedroom unit at 7/23 Ashley Street Reservoir sold for $265,000 by Ray White Northcote.
Melbourne’s home auction market has proven to be particularly resilient so far this winter producing remarkably consistent results in what remains clearly a solid seller’s market overall.
Latest ABS home loan data has revealed a surge in investor activity in Victoria. The value of loans approved for residential investment soared over May to a new monthly record of $3.04 billion – the first time the $3 billion mark has been exceeded over a month in Victoria. The value of investor finance approved is now 28 percent higher over the first 5 months of this year compared to the same period a year ago.
Investor activity now accounts for 48 percent of overall home sales finance activity in Victoria and continues to fuel prices growth in the Melbourne market.
Dr Andrew Wilson is Domain Group Senior Economist Follow @DocAndrewWilson
Results at http://www.homepriceguide.com.au/