Melbourne auction sales down 19% on same time last year: REIV

Declining auction sales, falling private sales and lower clearance rates are three clear trends emerging in the Melbourne housing market, according to the Real Estate Institute of Victoria (REIV).

The trends have emerged as the REIV cautions that there will be no house price growth in Melbourne over the next few years.

In its  2012 State of the Victorian Property Market report the REIV calculates that there have been 6,925 auction sales in Melbourne up to the weekend of June 18, compared with 8,566 at the same time last year and 11,647 in 2010 – representing a 19% decline from the same period last year and 41% down on 2010.

Clearance rates over the last two years are also about 20% below historical levels.

REIV spokesperson Robert Larocca says the number of private sales is also declining.

But he cautions that these figures will be revised upwards as the institute gets more complete data from estate agents.

Source: REIV, for the calendar year to June 18, 2012

Economics website macrobusiness.com.au points out that auction sales numbers are currently 21% below the five-year average while the clearance rate is 18% below the five-year average.

Macrobusiness.com.au calls the figures a “sobering assessment” of the Melbourne housing market.