Residential auctions see properties clear out before the entire city clears out to watch the Melbourne Cup
Melbourne residential property sales outshine Sydney in the lead up to the Cup holiday next week
28 October 2019 | Dr Andrew Wilson
The Melbourne auction market passed its biggest test of the year on Saturday with flying colours, recording a strong clearance rate despite a flood of listings. Melbourne recorded a month-high clearance rate of 78.5% which was higher than the previous weekends 73.7% and well ahead of the same weekend last year’s 49.0%.
Auction numbers predictably soared on Saturday which is typically the biggest auction day of the year as sellers avoid a clash with next weekend’s Melbourne Cup holiday. It’s a three minute horse race that stops a nation, Melbourne itself declares a public holiday and stops for three days.
A staggering 1400 homes were reported listed at the weekend which was well ahead of the previous weekends 828 and similar to the same weekend last year’s 1454.
Melbourne recorded a median auction price of $879,000 at the weekend which was again higher than the previous weekend’s $845,000 but lower than the $900,000 for the same weekend last year. Melbourne’s North East was the weekend’s top regional performer with a boom-time clearance rate at 85.4% closely followed by the consistently strong Outer East at 84.9%, the North 82.0% and the Inner South 81.5%.
Vendors are now moving back into the Melbourne market keen to take advantage of strong selling conditions with rising prices and secure a sale before year’s end.
Sydney auction clearance rate lower as listings rise
The Sydney home auction market produced another strong result for sellers generally at the weekend although the clearance rate fell to its lowest level for the month. The lower clearance rate may however reflect the impact of higher numbers of sellers now testing the local market.
Sydney reported a 76.5% clearance rate on Saturday which was lower than the previous weekends 80.7% but well ahead of the 51.4% recorded over the same weekend last year. Auction numbers were higher on Saturday with 641 homes reported listed compared to the previous weekend’s 626 but lower than the same weekend last year’s 677 auctions.
Sydney’s median weekend auction price of $1,222,000 was higher again than the previous weekend’s $1,195,000 and also higher than the same weekend last year’s $1,192,000. The Inner West was the top regional performer at the weekend with a clearance rate of 88.2% followed by the Upper North Shore at 86.1% and the Lower North at 80.0%.
Although Sydney’s auction clearance rate was lower at the weekend, strong market conditions prevail which is enticing more sellers into the marketplace keen to secure a sale before years end.
Dr Andrew Wilson is the Chief Economist of My Housing Market