RP Data market preview, Melbourne: Week ending 30 March, 2014

Melbourne clearance rates - market previewThis week RP Data is expecting 1,320 auctions in Melbourne. This weekend last year was during Easter so does not provide a useful comparison.

This is the third week in a row with over 1,000 auctions and that is unprecedented in Melbourne. The highest volume of auctions is in Reservoir with 26 followed by St Kilda with 23 and Armadale with 21.

All current indicators show signs of a market that is picking up strength with volumes increasing, days on market is falling and vendor discounting reducing.

Over the last week the measure of days on market for a house to sell at private sale has dropped from 37 to 35 days in Melbourne. Strengthening demand also leads to vendors at private sale discounting from their advertised price to a lessor degree – this has dropped from -5.5 to -5.4 per cent over the last week.

These market indicators can prove to be volatile on a weekly basis but the trend is clear and is likely to be confirmed in increased values when the RP Data home price index is released in the next week.

Key data

  • Clearance rate week ending 23 March: 69.4 per cent
  • Melbourne auctions expected week ending 30 March: 1,320
  • Melbourne private sales time on market week ending 23 March: 35 days (houses)
  • Melbourne vendor discounting market week ending 23 March: -5.4 per cent (houses)
  • Listings being prepared for market are 13.1 per cent higher in month ending 23 March

 

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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