Melbourne has notched its strongest auction clearance rate since March 2018, reflecting renewed buyer confidence in the marketplace and potentially signalling future price rises.
But buyers won’t have a heap to choose from on the auction market this week.
Last week’s 635 auctions returned a strong 68.9 per cent sale rate, according to CoreLogic — substantially higher than the 59.9 per cent recorded from 941 auctions on the corresponding week last year.
Clearance rates have come in above 60 per cent for five of the past six weeks in Victoria’s capital.
“It’s early days to call it a recovery, but it’s a positive sign,” CoreLogic auction analyst Kevin Brogan said.
“There’s a really strong correlation between high clearance rates and improvements in property values.
“(Buyer) confidence has returned to the market. But we’re not particularly seeing that confidence in terms of vendors entering the market (as) auction volumes have dropped quite significantly.”
Just 497 Melbourne homes are set to go under the hammer this week.
Mr Brogan said a lull in volumes was typical of winter, and buyers would likely see available housing stock levels lift come the spring selling season.
Mr Brogan said one or two further interest rate cuts also could be on the horizon this year, and the Australian Prudential Regulatory Authority had signalled plans to loosen lending requirements — both of which would be good news for prospective buyers.
Melbourne’s inner-east region returned a stellar 81.9 per cent clearance rate from 72 reported auction results last week, followed closely by the inner south at 76.9 per cent from 78.
Bentleigh East is tipped to be the busiest auction suburb this week, with 11 scheduled, followed by Northcote and Reservoir with 10 apiece.
Strong bidding is expected at the auction of a well-presented four-bedroom Ferntree Gully house at 19 Meagher St at 11.30am on Saturday, June 29.
EYS auctioneer Fabian Sanelli said about 160 groups had inspected the property — which has a $640,000-$699,000 price guide — in the lead up.
“It seems like a bit of a bargain,” Mr Sanelli said.
“Buyers know when they can take over the keys from settlement and not lift a finger.”
He said the owners of about 16 years had spruced up the pad and its backyard, featuring an alfresco deck.
First-home buyers and a handful of investors have been eyeing the property opposite Kelvin Drive Reserve, around the corner from Wattleview Primary School, and minutes from Mountain Gate Shopping Centre.
“There’s an enormous amount of confidence in the market,” he said.
“A lot more buyers are attending open houses because the banks are starting to lend a little bit more.
“The federal election (being decided) was also a confidence booster.”