Higher buyer for demand for detached houses: RP Data's Melbourne weekend auction analysis

Key metrics in the private sale and auction market are healthy with higher demand from buyers more apparent in the detached houses segment.

For instance in the auction market, at this stage in 2011 the clearance rate was 55% and in 2012 it was 56%. This year it is 70%.

That trend was repeated this weeks auction results with a preliminary clearance rate of 71.4% being recorded from 755 results.

Time on market for houses at private sale was 43 days in the latest monthly data from August and this was nine days lower than the five-year average. The unit market was showing signs of larger supply with its time on market being 48 compared to the five year average of 50.

If the market continues to perform to trend then October will see a new nominal peak in house prices reached.