Market continues to cool: RP Data's Melbourne auction preview

There are 979 auctions scheduled this weekend in Melbourne compared to 738 for the same time last year.

Conditions in the Melbourne auction market continue to be relatively cool. The clearance rate has exceeded 70% only twice so far in 2014 and has been slowly drifting down since that time.

As conditions are shifting in favour of buyers at auction the significant lift in volumes this week will prove to be a challenge for the market.

Conditions in the private sale market remain tight with the latest time on market monthly data  showing a new low for houses. In March the days on market for houses dropped to 35, the lowest on record. Time on market for units reached 37 days highlighting softer conditions in the higher density market as this is higher than the record low of 32 days in May 2010.

Key data

• Preliminary clearance rate week ending 11 May: 61.9%
• Melbourne auctions expected week ending 18 May: 979
• Melbourne private sales time on market week ending 11 May: 38 days (houses)
• Melbourne vendor discounting market week ending 11 May: -5.5% (houses)
• Listings being prepared for market are 2.5% higher in month ending 11 May (seasonally adjusted)