Melbourne weekend auction clearance rate picks up to 61% but private sales on the rise: REIV

There was bounce in Melbourne auction clearance rates in the last weekend of school holidays, with 61% of homes selling under the hammer compared with 52% last weekend and 55% the same weekend last year.

There were 342 auctions over the weekend, with 208 selling for a combined $118.4 million and 134 being passed in, 84 of those on a vendor bid, the Real Estate Institute of Victoria (REIV) reports.

The median selling price was $611,500 for houses and $500,750 for units.

For the June quarter the clearance rate was 60% compared with 61% in the March quarter and 59% in the June quarter last year, with a median auction price of $701,000.

This was 2% lower than the $715,000 recorded in the March quarter.

In comparison, there were 493 private sales over the weekend with a cumulative value of $223.4 million.

Across the quarter, private treaty sales achieved better results for vendors, with prices rising by 2.1% to a median of $469,950 in the quarter.

Figures analysed by the REIV also show a definite shift towards more private treaty sales over the quarter

The REIV calculated a 23% drop in the number of homes sold at auction and a 14% increase in those sold privately off a similar volume of homes sold compared with the June quarter of 2011.

REIV chief executive Enzo Raimondo says this reflects “the traditional shift back to private sales in a range of suburbs when the overall market is flat”.

John Sommers, buyers’ advocate and valuer with McRae Property, told The Sunday Age the “really good-quality stuff is still selling and still selling well”, but properties with “any problems attached” were not selling well or not selling at all.

Over the weekend the top-selling house was four-bedroom Federation Queen Anne residence in Ivanhoe, dating to around 1908, which sold at auction for $1,625,000,  with the listing held by Miles Real Estate.

Next weekend the REIV expects about 360 auctions.

Sydney achieved a clearance rate of 58.8% compared with 56.2% last weekend, with 134 out a 199 properties selling under the hammer with a total value of $86.9 million, according to Australia Property Monitors.

The median auction price for a house was $733,500 and $652,000 for a unit.

Dr Andrew Wilson, senior economist at APM, says Sydney’s 58.8% clearance rate was the best for weeks.

“Momentum is growing despite slower winter season. Consistently better than same time last year,” Wilson tweeted.

The top seller at auction over the weekend in Sydney was a three-bedroom unit at Milson Point, which sold for just over $2 million through McGrath.

“Now that we are halfway through winter, we are seeing a clearer picture of the impact the cooler months are having on the property market,” says Real Estate Institute of NSW (REINSW) chief executive Tim McKibbin. 

“The past few weeks have seen the clearance rate remain just below 60%, however this figure is expected to increase from now until spring, along with the number of auctions held each week, which should rise to around 500 to 600.” 

The REINSW calculated a Sydney clearance rate of 63% over the weekend, with 172 properties sold and 100 passing in.