Conditions differ across Melbourne
This is particularly the case this year, when there has been much discussion about the auction market, sometimes due to seemingly conflicting signals.
This is highlighted by the fact that the clearance rate is 21 per cent below this time in 2010; yet the overall volume of listings is very similar.
Demand and supply is not consistent in all parts of Melbourne and sensible buyers will know this.
A detailed comparison of activity in suburbs reveals that, in some cases, increased volumes have resulted in predictably reduced clearance rates, while in others, volumes have increased and clearance rates have improved compared to the Melbourne average.
For example: in Clayton there have been over twice as many auctions as this time last year and the clearance rate has dropped by nearly 60 per cent.
Whereas, in Glen Huntly, there have also been around twice as many auctions, yet the clearance rate has not shifted; a remarkable result, given the city-wide drop of 21 per cent.
This would indicate that, in a range of suburbs, supply is exceeding demand this year; the most significant examples are Clatyon, Box Hill South, Bulleen, Viewbank, West Footscray and Blackburn South. In those suburbs buyers have the upper hand compared to this time last year.
Conversely, there is a range of suburbs where increased stock has still not matched buyer demand and these suburbs are outperforming the auction market as a whole. The most significant examples are Glen Huntly, Mont Albert, Montmorency, Caulfied, Fitzroy North, Mitcham, Hawthorn and Albert Park. In those suburbs buyers will find they still face competition from other bidders.
These variations simply highlight the importance of undertaking your research and working with a local REIV Member to ensure you understand your local market.