Healthy signs for the market
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