RP Data Auction Market preview, Melbourne; Week ending 12 October, 2014

RP Data auction market preview | Robert LaroccaThere are 992 auctions scheduled this week in Melbourne compared to 1008 for the same time last year (the fourteenth week with over 1,000 auction this year). The highest volume of auctions will be in Mount Waverly with 19 expected.

After a few weeks where sellers were holding the upper hand, last week showed that they still need to ensure that their sale price expectations are not too high. While the Melbourne market is healthy, it is recording more moderate growth that in the two previous upswings in 2007 and 2010.

September quarter property values showed that the strongest growth in house values on a suburb basis were in the inner east.

Armadale saw a 25.4 per cent rise over the last year and similar growth was recorded in nearby Malvern East, Glen Iris and Camberwell. It is often the case that in an improving market the most expensive segment records the strongest increase in values.

It was also interesting to note that Fairfield joined its neighbor, Alphington, as a suburb with a median house value of in excess of a million dollars. Buyers who can’t afford Mont Albert or Balwyn are gravitating north of the Yarra.

On a city wide basis, the time on market results for houses sold at private sale rose from 39 days to 40 days over the last week whilst vendor discounting fe;; from -5.3 per cent to -5.1 per cent.

Key data

  • Clearance rate week ending 5 October: 69.1 per cent
  • Melbourne auctions expected week ending 12 October: 992
  • Melbourne private sales time on market week ending 5 October: 40 days (houses)
  • Melbourne vendor discounting market week ending 5 October: -5.1 per cent (houses)
  • Listings being prepared for market are 3.9 per cent higher in month ending 5 October (seasonally adjusted)

 

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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