The 77.7 per cent result was achieved despite a significant rise in listings. The numbers herald the start of the spring selling season next weekend.

There were 770 properties scheduled to go under the hammer at the weekend, well up on the 647 auctioned over the previous weekend.

Record numbers of properties for the month were auctioned over August with nearly 3300 listed in the metro area.

The 77.7 per cent clearance rate recorded was up from 75.3 per cent recorded the previous weekend.

The winter auction market has clearly strengthened over recent weeks with the current four weekend average at 75.3 per cent compared to the previous four weekend result of 74 per cent.

The outer-east again recorded the highest clearance rate at the weekend with a strong 84.7 per cent result. This was closely followed by the south-east with 84.6 per cent, the north-east with 83.3 per cent, the inner-east with 82.2 per cent and the highest number sales at 83, the inner-south 80.4 per cent and the north-west with 79.1 per cent.

Notable sales in the outer-east reported at the weekend included a four-bedroom home at 45 Bogong Avenue, Glen Waverley sold for $1.78 million by JRW Property International, another four-bedroom home at 31 Charlotte Street, Glen Waverley, sold by Fletchersfor $1.6 million, a four-bedroom home at 22 Rhodes Drive, Glen Waverley sold for $1,355,000 by Harcourts Glen Waverley and another four-bedroom home at 25 Catalina Avenue, Ashburton sold for $1.34 million by Mackintosh First National.

The most expensive property reported sold at auction at the weekend was a five-bedroom home at 1-3 Palm Grove, Deepdene, sold for $3.18 million by RT Edgar.

The most affordable property reported sold at the weekend was a two-bedroom unit at 3/21 Empire Street, Footscray, sold for $260,000 by Sweeney Footscray.

Next weekend is the first test for the spring market in Melbourne with listings set to rise significantly through to the end of the year.

A solid and rising market performance over winter ensures a confident start to spring with the prospect of continuing encouraging results for sellers.

Although clearance rates are set to continue at healthy levels, prices growth is unlikely to match the strong results recorded over last spring with rising affordability barriers acting to constrain growth.

The Reserve Bank meets this week for its regular monthly meeting and although economic indicators remain mixed the bank is likely to leave rates on hold for the 13th consecutive month – the longest steady sequence since 1998.

Although rates are set to remain on hold over the near-term a weakening economy - particularly rising unemployment – together with a stubbornly high dollar will continue to put a downward bias on potential interest rate outcomes.

Dr Andrew Wilson is Domain Group Senior Economist
@DocAndrewWilson