The Melbourne weekend auction market has ended the year with yet another strong result for sellers despite an unprecedented end of year deluge of listings.
Melbourne recorded a clearance rate of 77.3 percent at the weekend which, although lower than the previous weekends 80.1 percent, remained clearly higher than the 68.9 percent recorded over the same weekend last year.
Saturday’s strong result was particularly noteworthy given the record number of final weekend auctions conducted and reflects a confident market that has met every challenge this year.
A remarkable 1058 homes were listed for auction on Saturday which was well ahead of the previous record final weekend total of 717 reported last year on December 17.
December has also reported the highest number of weekend auctions ever recorded for that month with 3603 compared to last year’s previous record 3558. Melbourne’s record December auction activity has reversed this year’s trend of fewer auctions compared to the same period last year.
Regional auction results were again consistent at the weekend with most suburban areas continuing to share in the strong market conditions. The inner south however reported an extraordinary boom-time result with a break-away leading clearance rate of 90.4 percent. Next highest was the inner city with 81.3 percent followed by the north 80.2 percent, the south east 78.8 percent, the north east 77.0 percent, the outer east 74.8 percent, the west 74.0 percent and the highest sales at 131, and the inner east with a clearance rate of 72.0 percent.
Notable sales reported at the weekend included a 5 bedroom home at 20 Glen Street Hawthorn sold for $3,420,000 by Marshall White, a 4 bedroom home at 86 Richmond Terrace Richmond sold by Jellis Craig for $3,414,000, a 5 bedroom home at 727 Hampton Street Brighton sold for $3,220,000 by Biggin and Scott, a 5 bedroom home at 8 St Aubin Street Beaumaris sold for $2,550,000 by Buxton and a 3 bedroom home at 41 Gore Street Fitzroy sold by Caine Real Estate for $2,550,000.
The most expensive property reported sold at auction was a 5 bedroom home at 24 Alexandra Avenue Canterbury sold for $4,012,000 by Marshall White. The most affordable property reported sold at the weekend was a 2 bedroom unit at 7/74-76 Beach Street Frankston sold for $250,000 by Harcourts.
For a list of Melbourne auction results click here Melbourne auction results Saturday December 17
Melbourne recorded a median auction price of $707,500 on Saturday which was lower than the $800,000 reported the previous weekend but 5.4 percent higher than the $671,000 recorded over the same weekend last year. A total of $432.6m was reported sold at auction in Melbourne at the weekend.
The Melbourne housing market has recorded another strong result for sellers this year and is set to remain a leading performer again next year although growth rates are likely to be significantly lower.
The Melbourne median house price surged over spring increasing by 5.0 percent over the November quarter compared to the previous quarter to a new record high $796,367 – and an increase of 9.8 percent over the year.
Melbourne’s median unit price has also increased over spring rising by 6.0 percent to a new record median of $472,667 – an annual increase of 6.5 percent.
Melbourne house prices can be expected to increase by 5 percent next year with the increasingly likely stimulatory impact of lower official interest rates offset by higher mortgage rates set by banks.
Unit prices can also be expected to continue to increase although at a lower annual rate than houses at 3 percent reflecting higher levels of new apartment stock entering the market place
Dr Andrew Wilson is Domain Group Chief Economist Twitter@DocAndrewWilson join on LinkedIn