Melbourne Property News Monthly Wrap – May 2014

High numbers and high temperatures for May

May not only delivered unusually high temperatures but also high numbers of auctions, seeing 4267 auctions reported to the Real Estate Institute of Victoria (REIV), with 3075 sales recorded. 1192 properties were passed in, 653 of those on a vendor bid. The clearance rate stayed high for most of May with a strong 73% recorded on the last weekend. Over May’s five weekends, property clearance rates started in the high 60’s and finished strongly in the low 70’s, averaging 70.5% for the month. This was up a little on last month’s clearance rate of 70%.

After a booming March, then a quieter April, May was going to be a real litmus test for the ongoing strength of the market. The result was an energetic performance that keeps Melbourne on track for a record breaking season. By the fourth weekend of May there had been over 10,000 sales so far this year, compared to the previous record of 9758 at this point in 2010.

Many vendors who may have been waiting for sustained signs of an improving market have decided to make the move.

There has been a 32% jump in properties sold at auction so far this year compared to 2013. The figures show that people are not only putting properties up for sale, but that the properties are selling too. With the existing momentum and the lead up of May’s mild temperatures we may see a stronger than usual June as well, although traditionally, activity eases through mid-year with colder weather putting a dampener on property presentation, open for inspections and conditions for auctions.

Craig Knudsen
Principal Advisor
Vendor Marketing

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