A day of number crunching
TODAY is auction day for almost 1000 home owners across the city. This is the first big day of under-the-hammer action and therefore the first big test of the market this year.
There have been solid clearance rates in the past couple of weeks — 66 per cent and 65.7 per cent, according to RP Data figures.
RP Data research analyst Cameron Kusher said auction volumes more than doubled last week to 541, up from 253 the week before.
‘‘At the same time last year, there were 597 auctions held in Melbourne and the final auction clearance rate was recorded at 53.6 per cent,’’ Mr Kusher said.
As more properties are going to auction this weekend, market watchers are keen to see whether buyers are out in force or sitting on the sidelines.
Wakelin Property Advisory director Richard Wakelin said the clearance rate could fall this weekend thanks to the leap in auction numbers.
But he said a dip, instead of a big fall, could bode well.
‘‘It’s often been the case down the years that a pick-up in the Melbourne market follows an improvement in the stock market and the Sydney property market,’’ he said.
‘‘Both those two boxes have been ticked this time around.’’
Real Estate Institute of Victoria chief executive Enzo Raimondo said this weekend’s results might indicate the current state of the market this year but could not predict how the year would end.
‘‘In the past five years the weekly clearance rate has rarely been the same at the end of the year as it was at the start.,’’ he said.
‘‘Last year it was mostly stable over the year. In 2011 it fell over the course of the year, in 2010 it dropped sharply, in 2009 it rose sharply and in 2008 it dropped. In each year there were a variety of reasons for the change in sentiment over the year and volumes varied as well.’’
The top price paid at auction last week was a four-bedroom house at 4 Penn St in Balwyn North, which fetched $1.63 million.
A new, five-bedroom house at 35 Wilson Rd in Doncaster (pictured) sold before auction for $1.65 million.