Analysis provided by Chief Economist Dr Andrew J. Wilson of My Housing Market (PhD, MSc, GradDipEco, BConEco, MRICS)
Melbourne’s auction market approaching boomtime conditions
The Melbourne weekend home auction market continues to rise and is now remarkably closing in on 80% clearance rates – the benchmark for boomtime conditions.
Melbourne recorded an overall median weekend auction clearance rate of 77.7% for May, which was higher than the 75.8% reported for April and significantly higher than May 2022’s 67.3%.
The May rate was the highest recorded since October 2021, with a sellers’ market having now emerged.
Melbourne monthly clearance rates:
This month, 2777 homes were listed for Saturday auction at an average of 694 per weekend, which is lower than the 962 averaged over May last year but above April’s 688 figure.
Melbourne recorded a May weekend median auction price of $1.085M for houses, 3.3% higher than April but 1.4% lower than May last year.
Melbourne weekend auction results, May 2023
Melbourne regions May clearance rates:
Melbourne regions May median house auction prices:
Premium Auction Markets
Melbourne premium areas May weekend auction results:
Melbourne premium areas May weekend median auction prices:
Melbourne premium areas top 10 suburbs May reported results:
The Mornington Peninsula housing market has continued to report relatively steady results over May although activity levels remain below those reported at the same time last year.
Weekend auction clearance rates for May fell slightly to 61.1% compared to the April result of 63.3% but remained below the 87.5% annual peak recorded over May 2022.
Mornington Peninsula auction clearance rates:
Mornington Peninsula May auction results:
Mornington Peninsula median monthly house prices:
Dr Andrew Wilson’s summary
The Melbourne weekend home auction market has continued to rise through 2023, with May clearance rates continuing to track at the highest levels recorded since October 2021.
Restored and rising confidence is supporting the Melbourne market despite the impost of 11 monthly interest rate increases over the past year. The surprise decision by the RBA to leave rates on hold in April has reinforced consumer confidence.
The predictable follow-up May rate rise however has been generally shrugged off by home buyers and sellers, with the Melbourne market continuing to build momentum through the latter stages of the autumn selling season.
Higher clearance rates are predictably resulting in higher home prices, with Melbourne now recording three consecutive months of growth to May following a year of declines.
With prices consistently rising but still lower than a year ago, value opportunities will increasingly motivate buyers driven by the usual ‘FOMO’ (fear of missing out) energy that reinforces a market recovery.
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