Melbourne auctions providing growth in transactions

Melbourne auctions providing growth in transactions | RP Data | Robert LaroccaMelbourne property market transaction numbers are marginally higher on what they were this time last year with the growth largely coming through auction sales.

Comparing the months with the vast majority of settled sales, from January to July, the results show a rise of 3.7 per cent compared to a year ago.

On a month by month basis, the majority of the growth occurred in March and April when in excess of 1,000 auctions were recorded across 5 consecutive weeks.

This same occurrence also took place between 2012 and 2013. In 2013 there were 9,738 more home sales in Melbourne than in 2012 and there were 10,175 extra sales by auction.

The growth in volumes was completely accounted for through the use of auctions. The same seems to be the case this year.

Based on the first seven months of the year, there have been 1,725 more home sales and at the same time 3,248 more sales by auction.

These numbers highlight one of the key characteristics about auctions and where they work well when there is competition between buyers.   Competition such as this can arise through many means; there may be an inadequate number of homes on the market or something unique about the property in question.  This  is why auctions are rarely used in the outer suburbs and more frequently used in the inner city.

When making the decision of how to sell, owners would be well advised to keep this factor in mind and listen to the advice of their real estate agent.

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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