The number of residential auctions scheduled this weekend will be the highest number ever held in an April weekend.
Although the Anzac Day long weekend may be a contributing factor, the high number of auctions confirms the strong level of activity in certain metropolitan areas.
There are 1,150 residential auctions scheduled this weekend, which is almost twice the number usually held this time of the year. What makes this number more extraordinary is the very different economic conditions and the higher interest rates compared to the same period last year.
These factors highlight the challenge that the residential market faces this year. The obvious sign to date is the lower clearance rates at auctions.
Year to date and including this weekend, 6,680 residential auctions have been conducted. This is 9 per cent more than last year, when 6,111 were conducted and 39 per cent more than 2006, when 4,810 were conducted.
The year to date clearance rate is 69 per cent, compared with 82 per cent last year, however, this does not paint the whole picture. Last year 4,443 properties actually sold at auction in the year to date, compared to 4,746 this year.
There is no doubt that the market this year is different to last year, however, we continue to see more auctions than any year on record.
The reason for the continuing strong demand in residential property can be attributed in the main to strong migration levels and population growth being experienced in Melbourne. It is predicted that Melbourne’s population will increase by one million people by 2020, which is 10 years earlier than previously expected.
