Healthy signs for the mar­ket

Herald Sun - Property - - FRONT PAGE - ENZO RAI­MONDO

THE Melbourne mar­ket con­tin­ues to record mod­er­ate im­prove­ments this year. At the end of last week­end the clear­ance rate was 69 per cent com­pared to 61 per cent last year and 64 per cent in 2011.

Im­por­tantly the vol­ume of auc­tion sales has been steadily ris­ing.

There have been 9912 auc­tions so far this year with 6861 sell­ing.

This rep­re­sents 21 per cent more sales than the 5663 recorded last year and is level with 2011 when there had been 6849 auc­tion sales.

The mar­ket is, how­ever, still weaker than when prices last peaked in 2010.

At this time in 2010 the clear­ance rate was 84 per cent and there had been 26 per cent fewer sales.

There are four sub­urbs with clear­ance rates in ex­cess of 90 per cent: For­est Hill, Bulleen, Sur­rey Hills and Chad­stone. As those sub­urbs rep­re­sent a di­verse range of price points it high­lights that strong de­mand is not con­cen­trated in any one area at this point.

The are 28 sub­urbs with clear­ance rates of more than 80 per cent and lower than 90 per cent. The list in­cludes Ab­bots­ford, Coburg, Cam­ber­well, Ring­wood, Thorn­bury and Mitcham.

On a broader ge­o­graphic ba­sis the low­est clear­ance rates have been recorded in the city’s western sub­urbs.

This year 61 per cent of auc­tions for houses have sold com­pared to 66 per cent in the north and 78 per cent in the in­ner east.

This data serves as a re­minder that lev­els of de­mand dif­fer across the city.

Buy­ers and sell­ers who wish to fur­ther re­search th­ese trends can do so at www.reiv.com.au. Enzo Rai­mondo is Real Es­tate In­sti­tute of Vic­to­ria chief ex­ec­u­tive of­fi­cer

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