Despite the pause in Melbourne’s home auction market this holiday long weekend, sellers are expected to rush back next weekend and break new records.
This weekend, only 250 homes are scheduled to be auctioned during the Queen’s Birthday, down from 841 listed last weekend. Most of them are from the west, followed by the outer east, north east, and south east. Glen Waverley and Reservoir have the most auctions scheduled with seven each.
Melbourne reported a clearance rate of 74.4 per cent last weekend, which was below the 75.2 per cent recorded over the previous weekend. The city’s northern suburbs continue to lead regional results, recording higher than 80 per cent clearance rates over the past Saturdays. Meanwhile, the eastern suburbs remain regional underperformers.
The rising buyer activity in Melbourne reflects low interest rates and the reinvigoration of the investor market due to possible changes to property taxes.
Just this week, the Reserve Bank decided to leave the official rates on hold over June at a record low of 1.75 per cent. The latest economic data remains mixed with concerns over local and international economies. Even though the national GDP for the March quarter is generally positive, there are still signs of declining house price growth, which remains a key concern for the Reserve Bank. It is also likely that the central bank will once again cut rates in the near future due to declining inflation.
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