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The Melbourne home auction market returned on Saturday after the Easter holiday pause the previous weekend with yet another strong and remarkably consistent clearance rate for sellers.
Melbourne recorded a clearance rate of 79.5 per cent at the weekend, which was well ahead of the holiday-impacted 61.1 per cent last weekend, and also well ahead of the 74.7 per cent over the same weekend last year.
Although Saturday's result was marginally lower than the clearance rates recorded over the two weekends prior to Easter, it remained close to the 79.8 per cent average rate reported over the season.
Auction listings were predictably higher at the weekend with 705 homes scheduled to go under the hammer compared to 25 the previous weekend. Next weekend more than 1000 auctions are listed as the market returns in full after April's lengthy holiday distractions.
Melbourne's eastern suburban regions recorded the highest clearance rates at the weekend although most areas and suburbs continue to secure positive results for sellers.
Top rate was reported by the south-east with 87.7 per cent followed by the outer east 86.2 per cent, the inner east 86.0 per cent, the west 84.0 per cent and the most sales at 84, the north-east 83.3 per cent, the north 82.7 per cent, the inner south 71.7 per cent and the inner city with a clearance rate of 61.1 per cent.
Notable sales reported at the weekend included a four-bedroom home at 21 Mitchell Street, Northcote, sold by McGrath Northcote for $2,990,000, a two-bedroom home at 35 Park Lane, Mount Waverley, sold by Stockdale and Leggo for $2,815,000, another two-bedroom home at 46 Glencairn Avenue, Brighton East, sold for $2,303,000 by Buxton, a two-bedroom home at 2 Bruce Street, Preston, sold for $2,300,000 by McGrath Northcote and a three-bedroom home at 11 Howard Street, Box Hill, sold by Buxton for $2,080,000.
The most expensive property reported sold at auction was a four-bedroom home at 13 Toorak Avenue, Toorak, sold for $5,733,000 by Marshall White. The most affordable property reported sold at the weekend was a three-bedroom home at 18 Tute Lane, Melton West, sold for $279,000 by Hocking Stuart.
For a list of Melbourne auction results click here Melbourne auction results Saturday April 22
Melbourne recorded a median auction price of $866,000 on Saturday which was higher than the $819,000 reported over the pre-Easter weekend and 22 per cent higher than the $710,000 over the same weekend last year. A total of $248.7 million was reported sold at auction in Melbourne at the weekend.
It's no surprise that the booming Melbourne auction market, with weekend clearance rates averaging nearly 80 per cent this year, has translated into strong prices growth.
Latest Domain data reports that the Melbourne median house price surged 4 per cent over the March quarter to a record high of $843,674. Melbourne house prices have now increased a remarkable 15.2 per cent over the past year, which was the strongest result of all the capital cities.
Melbourne unit prices are also rising strongly, up 4.6 per cent over the March quarter to a new peak of $494,589. Unit prices have increased 12.5 per cent over the past year, which is the highest annual result recorded since the June quarter 2010.
Melbourne house and unit prices will likely continue to rise over the remainder of 2017 driven by low interest rates, record-level migration, rising investors, a solid local economy and a surge in first home buyers from mid-year after the end of stamp duty payments for this group.
Recent record levels of new apartment development have failed to affect Melbourne unit prices and although numbers will continue to rise this year, demand clearly continues to track ahead of supply.
Dr Andrew Wilson is Domain Group chief economist
Twitter@DocAndrewWilson
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