By Robert Larocca

Melbourne auction comment - RP Data

There are 303 auctions scheduled this week in Melbourne compared to 197 for the same time last year. Volumes are temporarily low due to the long weekend.

So far this year there have been 16,357 auctions and a clearance rate of 67.5 per cent compared to 68.6 per cent from 12,341 auctions this time last year.

The high volume of residential listings this year is having a positive impact for buyers. Home values have fallen for the second month in a row and auction clearance rates have remained in the 60’s.

The RP Data-Rismark May Home Value Index released this week showed that the value of a house dropped by 3.6 per cent in the month resulting in a rise of only 1.6 per cent over 2014. Unit values fell by 2.6 per cent over the year following a drop of 3.4 per cent in the month. It’s unlikely that buyers over winter and into spring will see their purchasing power diminished.

We also saw a small fall in the average time on market for houses sold at private sale from 41 to 39 days. This was coupled with a rise in vendor discounting to – 5.5 per cent from -5.4 per cent over the previous week.

Key data

  • Clearance rate week ending 1 June: 65.4 per cent
  • Melbourne auctions expected week ending 8 June: 303
  • Melbourne private sales time on market week ending 1 June: 39 days (houses)
  • Melbourne vendor discounting market week ending 1 June: -5.5 per cent (houses)
  • Listings being prepared for market are 1.1 per cent higher in month ending 1 June (seasonally adjusted)

Robert Larocca
RP Data Victoria Housing Market Specialist

Source: RPD

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