Melbourne’s 73.6 percent auction clearance rate recorded at the weekend is the highest recorded so far this year with the trend clearly rising since the Easter holiday break. Melbourne has now recorded a month of consecutive weekends above 70 percent and continues to perform at levels not recorded since the strong market conditions of three years ago.
Increased demand by first homebuyers may be a factor in a rising housing market, driven by recently announced changes to the state government incentive schemes for this buyer group.
Low interest rates and rising confidence are naturally also key ingredients to increasing housing market activity in Melbourne although both the national and local economic outlooks remain a concern.
Melbourne’s inner bayside and northern suburb regions were the top performers on the weekend recording auction clearance rates well above the city-wide result. The average sale price in the inner bayside was $842,802 with the north averaging $469,250.
A standout performer in the inner bayside at the weekend was the auction sale by Biggin and Scott Elsternwick of a 4 bedroom house at 14 Elster Avenue Elsternwick for $2,030,000. Another notable auction sale was a 4 bedroom home at 20 Beaver Street Malvern East sold by Hocking Stuart Glen Iris for $2,260,000. To Melbourne’s north, Brad Teal Pascoe Vale sold at auction a 3 bedroom house at 42 Greenwood Street Pascoe Vale South for $731,000.
Inner-city townhouses attracted buyer attention at auction in Melbourne at the weekend with Collins Simms Clifton Hill selling a 3 bedroom townhouse at 7/22-28 Best Street Fitzroy North for $909,000. Other notable 3 bedroom townhouse auction sales at the weekend include 3/16 Hurry Place Prahran sold by Biggin and Scott Prahran for $919,000 and 9/176 Noone St Clifton Hill sold for $762,500 by Hocking Stuart Carlton.
Melbourne’s weekend auction market is clearly on the rise with the best sales environment since the house price boom of three years ago. Most market segments are active as general buyer momentum continues to build. With just two weekends until the Queen’s Birthday holiday which signals the start of the usually quieter winter selling season, there is certainly no sign of a slowing down of buyer activity.
Sobering news was however reported last week with the federal budget predicting a deteriorating economic performance over the coming year. Latest ABS April jobs market data was also of concern for the local economy with the Melbourne unemployment rate stuck at 6.2 percent which is now the highest of all the mainland capitals and clearly higher than the 5.5 percent recorded last April.
The Melbourne housing market undoubtedly currently has a head of steam up although it still faces some challenges to its resilience over coming months.
Dr Andrew Wilson is Senior Economist for Australian Property Monitors Follow @DocAndrewWilson
Results at http://www.homepriceguide.com.au/