Falling clearance rates translate to better buyer conditions: RP Data's Melbourne auction preview

There are 643 auctions scheduled this week in Melbourne compared to 807 this weekend last year. This is a 20% reduction and reflects the record seven weekends with over 1,000 auctions already held.

Last weekends clearance rate was the lowest since late December in 2012.

The most popular areas for auctions this weekend are in the inner north where there are 10 in both Pascoe Vale and Preston.

Melbourne is currently returning a below average clearance rate when compared to the market nationally and that should translate into better conditions for buyers over the next few months. The lower clearance rate should also indicate to vendors with an auction in the next month the importance of taking current market conditions into account when setting a selling price.

Conditions eased slightly in the private sale market with time on market for houses stable at 33 days and vendor discounting still stable at -5.6%. The lowest vendor discount on a suburban basis is in Armadale for units at -2.6% followed by houses in Vermont at -2.7% and houses in Bayswater South at -3%.

Key data

• Clearance rate week ending 4 May: 61.9%
  
  
• Melbourne auctions expected week ending 11 May: 643
  
  
• Melbourne private sales time on market week ending 4 May: 35 days (houses)
  
  
• Melbourne vendor discounting market week ending 4 May: -5.6% (houses)
  
  
• Listings being prepared for market are 7.5% higher in month ending 4 May (seasonally adjusted)