Buyers need to take strong results into account: RP Data's Melbourne weekend auction preview
Buyers will need to take last weekend’s very strong result into account at the 1,228 auctions scheduled this week. A clearance rate in the mid 70s indicates that they will face more competition when bidding for the homes at auction and this may translate into higher prices being paid.
That result came after a new peak house price was recorded in January, suggesting many buyers still see a lot of value in the Melbourne residential market. The February RP Data–Rismark Home Value index will be released on Monday and it will indicate if the new peak was maintained.
In a continuation of the trend this year the number of homes listed for auction this week is 25% higher than the 984 this time last year. It is also the highest for this weekend on record.
The highest volume of auctions is in South Yarra with 21. There are 19 scheduled in Port Melbourne, Reservoir and Richmond.
Key data
Clearance rate week ending February 23: 73.5%
Melbourne auctions expected week ending March 2: 1228
Melbourne private sales time on market week ending February 23: 64 days (houses)
Melbourne vendor discounting market week ending February 23: -5.6% (houses)
Listings being prepared for market are 4.5% higher in month ending February 23
Robert Larocca is Victorian housing market specialist for RP Data.
