Melbourne recorded the weakest auction clearance rate for over a year on the weekend in a sign the market is finally meeting expectations of a slowdown.
Residential auctions recorded a clearance rate of 71.7 per cent from the 623 homes that went under the hammer, which is the lowest rate recorded since June last year.
Andrew Wilson from Domain Group said the weaker clearance figures was down to a surge in auctions in Melbourne’s inner eastern and inner southern suburbs.
“There was a much higher proportion of higher priced inner suburban properties that came onto the market this weekend,” he told Domain.
“It was way ahead of anything we have had since autumn and that’s clearly pulled down the clearance rate.”
“There is no doubt that the outer suburbs are the strong part of the market, and there were a much higher proportion of properties in the weaker parts of the market that went to auction on Saturday.”
The weakening figures suggest there’s finally a shift in power in the property market from sellers to buyers. It’s generally a sellers’ market when clearance rates stay above 70 per cent.
Mr Wilson said however that while he didn’t expect boom time clearance rate figures this Melbourne spring of over 80 per cent, he still thinks it will remain a sellers’ market.
“The outer suburban markets are certainly very strong,” he told Domain.
“The market is more balanced the closer in you get to the city.”
