Volume down on this time last year: RP Data's Melbourne auction preview

There are 1,264 auctions scheduled this week in Melbourne compared to 867 for the same time last year.

The strong level of auction listings in the first five months of this year compared to 31.6% higher last year is a reflection of two things; firstly it shows the confidence of vendors where they are willing to sell for a reasonable price, and secondly, a preference by real estate agents for auctions as a method of sale in an improving market.

The strong volumes will also mitigate price growth as buyers’ bargaining power is increased.

We saw a small rise in the average time on market for houses sold at private sale from 40 to 41 days. Vendor discounting reduced to – 5.4% from -5.5% the previous week.

Key data:

• § Preliminary clearance rate week ending 25 May: 61.7%
• § Melbourne auctions expected week ending 1 June: 1,264
• § Melbourne private sales time on market week ending 25 May: 41 days (houses)
• § Melbourne vendor discounting market week ending 25 May: -5.4% (houses)