Melbourne auction market well down on last year: Robert Larocca
There are 506 auctions scheduled this week in Melbourne compared to 783 for the same time last year.
Auction volumes continue to be well below those recorded 12 months ago and last week saw the lowest clearance rate for 26 months.
Recent analysis from CoreLogic RP Data & the Australian Bureau of Statistics (ABS) shows that, once inflation is accounted for, Melbourne home values were not quite yet at a new peak.
The results showed that home values were 2.7% below the peak in September 2010; when the improvement in January is included home values will be very close to peak in real terms.
It’s also illustrative to compare the strength of the market in this cycle to the last in 2010. Values rose at just half the rate of pace in 2010 which has helped to underscore the more moderate market conditions and consumer conservatism.
The private sale market has also begun. On a citywide basis, the time on market results for houses sold at private sale was 65 days over the last week and vendor discounting was -5.1%.
Key data
- Clearance rate week ending 8 February: 60.7%
- Melbourne auctions expected week ending 15 February: 506
- Melbourne private sales time on market week ending 8 February: 65 days (houses)
- Melbourne vendor discounting market week ending 8 February: -5.1% (houses)
- Listings being prepared for market are 9% lower in month ending 8 February (seasonally adjusted)