Key issue for post-Easter will be supply: RP Data's Melbourne auction preview

There are 49 auctions scheduled this week in Melbourne; the total volume of auctions is affected by the upcoming Easter and Anzac Day public holidays.

The lower volume of auctions does not reflect the broader level of supply with overall volumes continuing to rise. The high level of supply is having an impact on prices with a slight depreciation being recorded so far this month in the Melbourne Home Price Index.

The key issue for the Melbourne property market after Anzac Day will be the supply of homes. The RP Data Mortgage market activity shows that so far, the number of buyers has risen to match the higher levels of supply with mortgage activity events higher than a month ago in Victoria. As activity is generally reduced over winter the high level of supply will be a challenge for the market.

Key data

• Clearance rate week ending 13 April: 64.4%
  
  
• Melbourne auctions expected week ending 20 April: 49
  
  
• Melbourne private sales time on market week ending 13 April: 34 days (houses)
  
  
• Melbourne vendor discounting market week ending 13 April: -5.6% (houses)
  
  
• Listings being prepared for market are 3.5% higher in month ending 13 April