The highest clearance rate for nearly four years: RP Data's Melbourne weekend auction analysis

A preliminary auction clearance rate of 79% was reached from 1,147 auctions this week in Melbourne. This compares to 69.5% for the same time last year when there were around 19% fewer auctions.  

If the final result is similar to the preliminary one it will be the highest clearance rate since May 2010, a time when the market was also rising.  The strong demand recorded at auctions is not yet resulting in rising dwelling values over the month but the trend of the last year has not changed.  

The comparison with this time last year is illustrative and provides evidence of ongoing improvement in the market. More vendors have taken the chance to sell and they have largely been rewarded with a lift in the clearance rate.  

It is interesting to note that the rise in auction volumes is not representative of the overall level of activity with new listings at the same level as last year and suggests an increased use of auctions.  

Vendor discounting was higher for houses, at -5.6% compared to units at -5.3%.

Robert Larocca is Victorian housing market specialist for RP Data.