Analysis provided by Chief Economist Dr Andrew J. Wilson of My Housing Market (PhD, MSc, GradDipEco, BConEco, MRICS)
Home auction market surges
The Melbourne weekend home auction market continues to surge in April, with the local market consolidating the recovery.
Melbourne recorded an overall weekend auction clearance rate of 75.8% in April, higher than March’s 70.7% and higher than the 71.1% recorded in March 2022.
The April rate was the highest recorded since October 2021 with a sellers’ market now generally emerging.
Melbourne monthly clearance rates:
This month, 2749 homes were listed for Saturday auction at an average of 688 per weekend, lower than the 1115 averaged over April last year, and also lower than the 745 March 2023 average.
Melbourne recorded a April weekend median auction price of $1.05 for houses, which was 1.9% lower than March and April last year.
Melbourne weekend auction results, April 2023:
Melbourne Regions
Melbourne regions April clearance rates:
Melbourne regions April median house auction prices:
Premium Auction Markets
Melbourne premium areas April weekend auction results:
Melbourne premium areas April median auction prices:
Melbourne premium areas top 10 suburbs April reported results:
Melbourne premium areas top 10 sales April reported results:
Mornington Peninsula
The Mornington Peninsula housing market improved marginally over April 2023 although activity levels remain well below those reported at the same time last year.
Weekend auction clearance rates increased slightly to 63.0% over April compared to the March result of 62.5% but remained well below the 82.1% recorded over April 2022.
Mornington Peninsula auction clearance rates:
Mornington Peninsula April auction results:
Mornington Peninsula top April auction results:
Mornington Peninsula median monthly house prices:
Dr Andrew Wilson’s summary
The Melbourne weekend home auction market continues to rise in 2023, with April clearance rates now at the highest levels recorded since October 2021. With clearance rates now above 75%, the market signals robust competition amongst buyers for available homes, predictably pushing up home prices.
Confidence has returned to the local market despite unprecedented increase in interest rates over the past year after RBA’s decision to leave rates on hold over April.
Higher clearance rates are predictably resulting in higher home prices, with Melbourne now recording consecutive months of growth over March and April following a year of declines.
Rising demand for Melbourne homes will be supported by surging overseas migration from both permanent residents and students on temporary visas, placing an upward pressure on prices and rents in an already undersupplied housing market.
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