RP Data market review, Melbourne: Week ending 23 February, 2014

Melbourne clearance rates - market previewA preliminary auction clearance rate of 79 per cent was reached from 1147 auctions this week in Melbourne. This compares to 69.5 per cent for the same time last year when there were around 19 per cent 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 per cent compared to units at -5.3 per cent.

Robert Larocca
RP Data Victoria Housing Market Specialist

About Robert Larocca

Robert Larocca has built a profile over the past eight years as an expert on the Victorian residential property market. He worked for the REIV both directly and as a consultant over 8 years acting as a spokesperson, managing its research department and public policy. He has been a media and government relations consultant and spent a decade working across the three levels of government including as a Councillor and Mayor in the City of Moreland. He has well developed leadership skills in the not for profit sector and has been the Chairperson of CERES Community Environment Park for 9 years.

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