MOMENTUM is the buzz word for the moment.
There’s hardly a cricket press conference without a skipper talking about taking the momentum from a previous win into their next game.
But more to the point in these pages, is momentum a phenomenon that can affect the property market?
Judging by the movement in the auction clearance rate this month, it is.
Melbourne’s preliminary auction clearance rate for last weekend was 74.9 per cent across 1049 auctions, according to CoreLogic RP Data figures, compared to 70.9 per cent the previous week.
This time last year, Melbourne’s clearance rate was a lower 73.5 per cent, but with almost 350 more auctions.
CoreLogic RP Data Victorian auction specialist Robert Larocca said Melbourne’s clearance rate had lifted 15 points in two weeks.
“Last week’s momentum has been carried into this week, with solid demand evident in Melbourne,” Mr Larocca said.
This weekend, there are about 1400 auctions scheduled.
“This is the second week with over 1000 auctions for the year and volumes at auctions have risen to a level that is similar to last year now,” he said.
But the number of homes listed for sale last month was about 1.8 per cent down on the same time last year, although CoreLogic RP Data also reports the number of homes being prepared for sale is up slightly.
“It suggests consumers are still approaching the market with caution,” Mr Larocca said.
However, Harcourts Thomastown and Epping director Tony Lombardi said there were signs that consumer confidence is lifting. And it’s giving momentum to the property market.
“Once February kicked in it was like December continued,” Mr Lombardi said. “There is some pretty strong competition in the marketplace.”
Mr Lombardi said new listings weren’t as free-flowing as late last year, but competition from buyers was driving up the clearance rate, and prices.
“The vendors putting their property on the market are really capitalising on some really good results and hence why we’ve had some really over the reserve prices,” he said.
A modern four-bedroom home at 82 Hayston Blvd, Epping, sold $123,000 above reserve for $673,000.
At Thomastown, five buyers endured a 35-minute auction in 35C heat before a home at 38 Arndell St sold for $596,500, $46,500 above reserve.
This Epping property sold for $673,000 at auction last weekend, $123,000 above reserve.