Private sales an important indicator: RP Data's Melbourne weekend auction analysis

A preliminary clearance rate of 71.2% was reached from 146 auction results so far this week. Due to the low volume of auctions this week it is more important to look at the private sale market.  

RP Data has recorded a further tightening of the private sale market with the time on market for houses dropping again, this time from 36 days to 34. Conditions in the private sale market have been improving for sellers for the last year with time on market dropping 12 days.  

The same conditions are not apparent in the unit and apartment market where the time on market has not changed in any consistent manner over the past year.  

The price expectations of sellers are also being more closely matched by buyers in the market for houses sold at private sale where over the last year the vendor discount has dropped from 7.3% to 6.2% on a monthly basis.  

Homes sold at auction are not included in the days on market or vendor discounting measures as they are not relevant to fixed period campaigns and reserves are infrequently quoted.  

Volumes in the local auction market will increase again next week.