By Robert Larocca

Melbourne market preview with RP Data

There are 643 auctions scheduled this week in Melbourne compared to 807 this weekend last year. This is a 20 per cent reduction and reflects the record 7 weekends with over 1,000 auctions already held.

Last weekends clearance rate was the lowest since late December in 2012.

The most popular areas for auctions this weekend are in the inner north where there are 10 in both Pascoe Vale and Preston.

Melbourne is currently returning a below average clearance rate when compared to the market nationally and that should translate into better conditions for buyers over the next few months. The lower clearance rate should also indicate to vendors with an auction in the next month the importance of taking current market conditions into account when setting a selling price.

Conditions eased slightly in the private sale market with time on market for houses stable at 33 days and vendor discounting still stable at -5.6 per cent. The lowest vendor discount on a suburban basis is in Armadale for units at -2.6 per cent followed by houses in Vermont at -2.7 per cent and houses in Bayswater South at -3 per cent.

Key data

  • Clearance rate week ending 4 May: 61.9 per cent
  • Melbourne auctions expected week ending 11 May: 643
  • Melbourne private sales time on market week ending 4 May: 35 days (houses)
  • Melbourne vendor discounting market week ending 4 May: -5.6 per cent (houses)
  • Listings being prepared for market are 7.5 per cent higher in month ending 4 May (seasonally adjusted)

Robert Larocca
RP Data Victoria Housing Market Specialist

Source: RPD

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