Clear signs of improvement in Melbourne property market: Robert Larocca

With the exception of a few auctions – half of which are on the Mornington Peninsula – March is largely complete and there are clear indications that the market has moderately improved.

The clearance rate for March is currently 67%, which compares favourably to the 60% recorded in 2012. The clearance rate has come down from 72% in February this year, but given there were 60% more auctions in March, that is a reasonable outcome.

From the perspective of transactions, both auction and private sale, the REIV estimates a 9% lift in sales. Comparing sales volumes in March can often be complicated by when Easter falls and, as it occurred in April last year, it may have overstated the market in March.

This is a very healthy improvement as it shows overall market activity is higher as more people are actively buying and selling.

The improvement is also clear when the financial volume is considered. Last weekend saw $932 million in sales reported. Not only is that higher than any weekend in March last year, it’s the highest since the middle of April in 2010 when there were $936 million in sales.

Incidentally, the first quarter in 2010 saw three weekends with more than $950 million worth of homes transacted.

After Easter, auction volumes will be reduced, with around 500 in the first weekend of April and 550 in the second weekend.

Robert Larocca is communications manager of the Real Estate Institute of Victoria.