Analysis provided by Chief Economist Dr Andrew J. Wilson of My Hosing Market (PhD, MSc, GradDipEco, BConEco, MRICS)
Melbourne auction market still rising
The Melbourne weekend auction market is continuing to rise in 2023, with the monthly clearance rate tracking at its highest level since April 2022.
Clear and consistent improvement in local auction market activity has occurred so far throughout 2023 reflecting the strength of the Melbourne economy, despite higher interest rates.
Melbourne recorded an overall weekend auction clearance rate of 70.7% in March, higher than February’s 69.2% and only slightly lower than the 72.2% recorded in March 2022.
The March rate was the highest recorded since April 2022 – prior to the recent upswing in official interest rates that commenced in May.
Melbourne monthly clearance rates:
This month, 2979 homes were listed for Saturday auction at an average of 745 per weekend – lower than the 1069 averaged over March last year, but well ahead of the 626 February 2023 average.
Melbourne recorded a March weekend median auction price of $1.07M for houses, which was 1.9% higher than February but 4.0% lower than March last year.
Melbourne weekend auction results, March 2023:
Melbourne Regions
Melbourne regions March clearance rates:
Melbourne regions March median house auction prices:
Premium Auction Markets
Premium Auction Markets Melbourne premium areas March weekend auction results:
Melbourne premium areas March median auction prices:
Melbourne premium areas top 10 suburbs March reported results:
Melbourne premium areas top 10 suburbs March reported results:
Mornington Peninsula
The Mornington Peninsula housing market eased slightly over March following positive results recorded the month before. Weekend auction clearance rates fell marginally to 62.5%, compared to February’s 65.5% but remained well ahead of the 42.9% recorded over December 2022.
Mornington Peninsula auction clearance rates:
Mornington Peninsula March weekend auction results:
Mornington Peninsula top March auction results:
Mornington Peninsula median monthly house prices:
Dr Andrew Wilson’s summary
The Melbourne weekend home auction market has consolidated its solid performance over February, clearly continuing in revival mode over March. The monthly clearance rate has now reached over 70% and signals increased competition between buyers for available listings.
Rising confidence in housing markets, as evidenced by growing weekend auction clearance rates, is being supported by increasing value perceptions from buyers recognising that, although prices generally are still below the levels of a year ago, the gap is clearly narrowing with Melbourne home values now set to increase.
Demand for Melbourne homes is also set to grow with overseas migration surging from both permanent residents and students on temporary visas. This will continue to place upward pressure on prices and rents in a clearly undersupplied housing market.
In compiling this publication, the Publisher relies upon information supplied by a number of external sources. The publication is supplied on the basis that, while the Publisher believes all the information in it will be correct at the time of publication, it does not warrant its accuracy or completeness and to the full extent allowed by law excludes liability in contract, tort or otherwise, for any loss or damage sustained by subscribers, or by any other person or body corporate arising from or in connection with the supply or use of the whole or any part of the information in this publication through any cause whatsoever and limits any liability it may have to the amount paid to the Publisher for the supply of such information. The data and projections should be used as a guide only and should not be relied upon in making investment decisions. This extract has been prepared without taking into account your objectives, financial situation, knowledge, experience or needs.