Melbourne's auction market gaining momentum

31 May 2013

Buyers and Sellers Embrace Rising Market

Andrew Wilson

Published: May 31, 2013 - The Age Newspaper

http://theage.domain.com.au/real-estate-news/buyers-and-sellers-embrace-rising-market-20130531-2nfsa.html

Melbourne's autumn auction season ends this weekend on what has been the strongest start to the year in three years.

And the market has been gaining momentum, with auction clearance rates averaging 70 per cent since Easter.

There are 717 properties due to go under the hammer this weekend, the same number as last week but again considerably higher than the 592 auctioned over the same weekend last year.

Melbourne's inner city has the most listings with a very solid 130 auctions scheduled, followed by the west with 107 and the north-east with 106.

Richmond has the most auctions with 20 properties listed. This is followed by Preston with 12, and Kew, East Bentleigh, Northcote and Pascoe Vale each with 11 houses scheduled to go under the hammer this weekend.

For apartment auctions, Richmond is also the most popular with 12 properties listed, followed by Toorak with eight.

Melbourne has conducted 700 more auctions since Easter compared to the same period last year, with home sellers clearly activated by a rising market.

Auction clearance rates have continued to rise despite this increase in listings, which underscores the current strength of the market.

Buyer activity has spread through most suburban areas and price brackets recently although the inner-suburban prestige market remains leader of the pack.

Buyer activity in Melbourne's middle ring and outer-east suburbs has also been resurgent.

The housing market pauses briefly next weekend for the Queen's Birthday holiday, which signals the start of the normally quieter winter selling season in Melbourne.

Buy buyer momentum is set to continue into winter this year, particularly if the Reserve Bank unexpectedly cuts interest rates again next week.

Dr Andrew Wilson is Senior Economist for Australian Property Monitors.

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