Analysis provided by Chief Economist Dr Andrew J. Wilson of My Hosing Market (PhD, MSc, GradDipEco, BConEco, MRICS)
Melbourne auction market bounds into 2023
A reviving Melbourne weekend home auction market has bounced into 2023 with a surge in clearance rates over February as the local market now moves ahead of the improvement in activity reported over the 2022 spring selling season. And all despite continuing increases in official interest rates.
Melbourne recorded an overall weekend auction clearance rate of 69.2% over February, well ahead of December’s 62.6% average and now only slightly lower than the 73% recorded over February 2022.
February’s average was the highest recorded since April 2022 – prior to the upswing in official interest rates that commenced in May.
Melbourne monthly clearance rates:
This month, 2504 homes were listed for Saturday auction at an average of 626 per weekend – lower than the 949 averaged over February last year, and well below the 933 December average.
Melbourne recorded a February weekend median auction price for houses of $1.05M, which was 5% lower than February last year. An auction sales turnover of $1.112B was reported – 34.6% lower than last year’s February average result reflecting significantly fewer auctions conducted this year.
Melbourne weekend auction results, February 2023:
Melbourne regions February clearance rates:
Melbourne regions February median house auction prices:
PREMIUM AUCTION MARKETS
Clearance rates in Melbourne’s Premium inner-suburban auction market results were higher in Boroondara and Stonnington compared to December 2022, however listing numbers were lower for all regions.
Melbourne premium areas February weekend auction results:
Melbourne premium areas February median auction prices:
Melbourne premium areas top 10 suburbs February reported results:
Melbourne premium areas top 10 February auction results:
The Mornington Peninsula housing market has bounced back into 2023 following a subdued finish to 2022. Weekend auction clearance rates increased to 65.5% over February, well ahead of the 42.9% December average.
Although results remain below those recorded during the boomtime market a year ago, the prospects for the remainder of 2023 remain positive, with a growing likelihood of a continuing revival in activity.
Mornington Peninsula auction clearance rates:
Mornington Peninsula February weekend auction results:
Mornington Peninsula top February auction results:
Mornington Peninsula median monthly house prices:
DR ANDREW WILSON’S SUMMARY
The Melbourne weekend auction market has commenced 2023 with clearly positive results as clearance rates have surged above the levels reported in December 2022 and are now at the highest since April 2023. Auction clearance rates are closing in on the averages reported over the same period last year – a period that was considered to have strong market conditions.
Auction markets have been on the road to recovery since September despite a period of higher interest rates – with official rate increases every month since May 2022. The latest rate rise in February has had minimal impact on housing market activity with consumers generally shrugging off the impost of higher rates.
The revival in housing markets reflects the positive impact of a booming economy, with record-low unemployment rates and wages now rising at the fastest rate in over a decade. The Melbourne housing market is primed for the current revival to continue through the autumn selling season with demand fuelled by a surge in migration into a clearly undersupplied market. With home prices still generally below the levels of a year ago, savvy buyers will be increasingly drawn to the value opportunities that currently exist.
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