Property cycle now shallower with different buyer mix: RP Data's Melbourne auction preview

There are 349 auctions scheduled this week in Melbourne. Whilst higher than last weekend volumes are lower than usual due to Anzac Day.

RP Data captured 43 auction results across Melbourne last week with 25 successful sales recorded; however, due to the very low volume a clearance rate would not be statistically reliable.

The number of active buyers and sellers is clearly higher than it was over the past three years. However, as first home buyers are at record lows the improved demand is coming from other segments.

Data shows that there are a proportionally higher numbers of upgraders and investors that was the case in the last rising market in 2009.

This highlights a fundamental difference to the last few cycles in the market as not only is this one shallower so far but there is a different mix of buyers.

Key data

• Clearance rate week ending 20 April: NA due to low volumes
  
  
• Melbourne auctions expected week ending 27 April: 349
  
  
• Melbourne private sales time on market week ending 20 April: 33 days (houses)
  
  
• Melbourne vendor discounting market week ending 20 April: -5.6% (houses)
  
  
• Listings being prepared for market are 19.4 per cent higher in month ending 20 April (seasonally adjusted)