The winter auction market is producing consistently solid results with the current four-weekend average at 74.2 per cent compared to the previous four-weekend result of 73.3 per cent.

Listings numbers have flattened over recent weekends as the market gears up for the spring-selling season. This weekend 625 home auctions were scheduled compared to the 624 auctioned the previous weekend. Auction numbers, however, remain above the listings recorded over the same weekend a year ago when 569 homes went under the hammer.

Melbourne’s south east recorded the best result of all the suburban regions at the weekend with a strong clearance rate of 87.5 per cent. This was followed closely by the ever-popular outer east with 87.3 per cent with the north at 79.5 per cent, the inner south 76.6 per cent, the inner east 75 per cent, the north east 74.5 per cent and the inner city 74 per cent.

The top sales in the outer east were all recorded in Glen Waverley which continues to be a magnet for buyers.

The leading results were a five-bedroom home at 25 Ivanhoe Street sold for $1.59 million by Biggin and Scott, another five-bedroom home at 32 Vermont Street sold for $1.58 million by Ray White Glen Waverley, a four-bedroom home at 11 Grace Street sold by Jellis Craig for $1.51 million and a three-bedroom home at 1 Morocco Court, Glen Waverley, sold by Harcourts Glen Waverley for $1,212,000.

The most expensive property reported sold at auction at the weekend was a five-bedroom home at 58 Hanby Street, Brighton, sold for $3.99 million by Nick Johnstone.

And the most affordable was a one-bedroom unit at 31/116 Inkerman Street, St Kilda, sold for $216,000 by Hocking Stuart.

Although Melbourne’s weekend auction market has produced consistently solid results so far this year with generally healthy competition amongst buyers for properties, prices growth is set to moderate.

Local incomes growth remains benign which will constrain the capacity of buyers to bid up prices in the marketplace.

Latest ABS data reported that wages in Victoria increased by just 0.6 per cent over the June quarter to be up by 2.8 per cent over the financial year. The June result was down on the 0.7 per cent result recorded over the March quarter.

The latest Melbourne inflation rate reported that prices increased by 2.7 per cent over the June quarter -  a similar result to the Victorian increase in wages over the same period.

With flat growth in real wages continuing and the impact of the sharp fall in interest rates over the past two years diminishing, Melbourne prices growth will continue to flatten - particularly as unemployment continues to rise.

Dr Andrew Wilson is Domain Group Senior Economist. 

@DocAndrewWilson