Analysis provided by Chief Economist Dr Andrew J. Wilson of My Hosing Market (PhD, MSc, GradDipEco, BConEco, MRICS)
Resilient Melbourne auction market concludes a year of revival
The resilient Melbourne weekend home auction market has ended 2022 with steady results over December, consolidating a clear revival in activity over the spring selling season.
Although interest rate increases predictably acted to sideline market activity through winter, the impact was relatively benign, with buyers and seller numbers restoring as usual through spring.
Melbourne recorded an overall weekend auction clearance rate of 62.6% for December, just below November’s 63.7% average. The annual monthly clearance rate gap narrowed to under 6% over December, compared to the 10.1% difference recorded in November.
Melbourne monthly clearance rates:
This month, 2799 homes were listed for Saturday auction, at an average of 933 per weekend – much lower than the 1578 averaged over December last year, but well ahead of November’s 803 average.
Melbourne recorded a December weekend median auction price for houses of $1.015M and an auction sales turnover of $915.5B, which was 45.5% lower than last year’s December average result reflecting significantly fewer auctions conducted this year.
Melbourne Weekend Auction Results, December 2022:
Melbourne’s Inner East reported the highest regional monthly weekend auction clearance rate over December at 77.1%.
Melbourne regions December clearance rates:
Melbourne regions December median house auction prices:
PREMIUM AUCTION MARKETS
Melbourne premium areas December weekend auction results:
Melbourne premium areas December median auction prices:
Melbourne premium areas top 10 suburbs December reported results:
Melbourne premium areas top 10 December auction results:
The Mornington Peninsula housing market was down again over December however the prospects remain positive for the usual seasonal revival over the forthcoming holiday period.
The traditional summer lift in local market activity will be supported by a strong economy with record-low unemployment rates and rising wages. The spring revival in the broader Melbourne housing market and a surge in migration will also act to support Mornington Peninsula summer market activity.
Mornington Peninsula auction clearance rates:
Mornington Peninsula November weekend auction results:
Mornington Peninsula top November auction results:
DR ANDREW WILSON’S SUMMARY
The Melbourne weekend auction market experienced a topsy-turvy 2022 with a strong but fading autumn followed by a decline over winter and finally a revival over the traditionally more active spring selling season.
Price growth was predictably tempered by rising affordability barriers, with buyer and seller activity also moderated following the pent-up demand generated through the covid lockdown period.
The first increase in official interest rates for over a decade in May acted to exacerbate affordability constraints, with a decline in consumer sentiment also side-lining wary home buyers and sellers.
The Melbourne housing market however bounced back through spring despite continuing monthly interest rate increases, reflecting the positive impact of record-low unemployment rates and rising wages on reviving consumer confidence.
The prospects for the local market remain positive for a continued recovery through 2023 driven by likely ongoing strong economic conditions and a surge in international migration into a clearly undersupplied housing market. Positive price growth is likely to resume over the first quarter of 2023.
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