Enzo Raimondo, the CEO of the Real Estate Institute of Victoria has just reported on today’s Auction Clearance Rates for Melbourne.
Of the 937 auctions reported today, 84 sold prior to the auction, 475 sold at auction and two sold after, making a clearance rate of 60 percent. There is 135 auctions with no result so far, and as we have seen in previous weeks, we expect the clearance rate to be adjusted down as more data comes to hand. This week last year the clearance rate was healthy 82 percent.
But the comments from Mr Raimondo are the most interesting :
The clearance rate has remained stable this weekend, confirming that the drop in demand from the latest interest rate rise was not temporary. This will now impact stock levels in 2011.
So it looks like weak Auction Clearance rates is something Melbourne will have to get use too as we move into 2011 with the prospect of further interest rate rises to cool our booming commodity market. Inventories of unsold homes continue to grow.
In recent months as awareness grows that Australia is in the grips of the biggest asset bubble in Australia’s history and one of the biggest in the world, we have seen investors flock to the exits hoping to lock in capital gains before they evaporate in front of them. Enzo Raimondo writes :
Its interesting to note that 2010 will see the most auctions ever held in one year in Melbourne, surpassing the previous high in 1999.
According to the REVI, there will be 1280 auctions next week. As Enzo writes :
This [today] is the third weekend in a row with over 1000 auctions planned and the biggest of the year – till next weekend.
The “shortage” of homes appears a distant memory.
» Weekly Auction & Sales Results, Market Overview – The REIV, Saturday 4th December 2010