Analysis provided by Chief Economist Dr Andrew J. Wilson of My Hosing Market (PhD, MSc, GradDipEco, BConEco, MRICS)
Spring concludes with solid auction results
The Melbourne weekend home auction market has recorded remarkably consistent results in Spring, with auction clearance rates holding steady.
An unprecedented surge in official interest rates since May has failed to significantly quell the local housing market, with buyer and seller confidence remaining generally positive despite widespread predictions of falling home prices.
Melbourne recorded an overall weekend auction clearance rate of 63.7% over November, which was just below the 64.8% October average. Monthly auction clearance rates averaged 64.1% across spring, unsurprisingly higher than winter’s 62.5% average.
Melbourne monthly clearance rates:
3,211 homes were auctioned on a Saturday over November at an average of 803 per weekend. November’s auction volume was 37% lower than November last year, but well ahead of the October average.
This month, Melbourne recorded a weekend median auction price for houses of $1.020 million – 6.1% lower than November last year.
Melbourne weekend auction results, November 2022:
MELBOURNE REGIONS
Melbourne’s Outer East reported the highest regional monthly auction clearance at 77.8%, followed by the Inner East with 70% and the Inner South at 67.3%.
Melbourne regions November clearance rates:
Melbourne regions November median house auction prices:
PREMIUM AUCTION MARKETS
Melbourne premium areas November weekend auction results:
Melbourne premium areas November median auction prices:
Melbourne premium areas top 10 suburbs November reported results:
Melbourne premium areas top 10 November auction results:
MORNINGTON PENINSULA
The Mornington Peninsula housing market eased again over November with auction clearance rates now consistent with those reported for the wider Melbourne market. Listing numbers continue to be subdued, reflecting the impact of recent sharp increases in official interest rates on confidence.
The local market outlook however is improving and the usual summer bounce in Mornington Peninsula housing market activity will be enhanced by a booming economy and surging migration fuelling higher demand in the broader Melbourne market.
Mornington Peninsula auction clearance rates:
Mornington Peninsula November weekend auction results:
Mornington Peninsula top 10 November auction results:
DR ANDREW WILSON’S SUMMARY
The Melbourne weekend home auction market continues to produce encouraging results for buyers and sellers generally, with consolidating confidence continuing to drive rising activity levels.
Housing markets predicably eased in autumn and into winter, with last year’s boomtime conditions driving remarkable price growth that significantly reduced affordability and side-lined buyers. Markets were also confronted by the first increase in official interest rates in over a decade in May, with the RBA continuing to raise rates over the following months.
The Melbourne housing market however has shrugged off the negatives and auction markets have gradually risen through winter and into spring, recording consistently positive results for buyers and sellers generally.
Although auction markets typically wane through late November and into December as buyers become increasingly distracted by the upcoming holiday season, the prospects for the Melbourne housing market are improving – particularly driven by a wave of migration – and is set to build on a resilient performance over 2022.
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.