Melbourne home sellers have been getting hammered with the worst consistent clearance rate in years.
Victoria’s auction market is having its toughest run since 2024.
The city has notched five weeks in a row with a clearance rate under 60 per cent, according to PropTrack auction data.
And one of the state’s top auctioneers has revealed sellers who don’t heed the market warning could be facing more price pain ahead, especially if they ignore one key data point from their sales campaign.
With 916 scheduled across the state this week, experts are tipping the trend will continue.
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PropTrack senior economist Anne Flaherty said after five straight weeks, including last week’s subdued Easter market when just 167 homes went under the hammer, the market was now clearly favouring buyers.
It’s the worst run for the auction market since spring, 2024, when the clearance rate came in below 60 per cent for 15 straight weeks.
“This is well below average, Melbourne typically has one of the highest clearance rates in the country,” Ms Flaherty said.
“Buyer demand has cooled off. There have been relatively high amounts of stock for sale, but that’s not unusual for this time of year.”
The economist said that with the typically less auction heavy winter months looming, the sales slump could lead to a reduction in homes being sold via auction.
Realestate.com.au economist Anne Flaherty has warned buyers are back in control of Melbourne’s auction market amid a protracted clearance rate slump.
1/17 Olive St, Reservoir, was one of the relatively few homes declared sold from the Easter week’s auction list. It scored a $722,000 price tag.
Meanwhile, wider economic as well as market concerns and the prospect of a rate hike next month could limit buyer numbers.
“Vendors could lose confidence to go under the hammer,” Ms Flaherty said.
“And there’s a huge amount of uncertainty around personal finances and the cost of living; people are likely to hesitate.”
She added that with the federal budget now just weeks away, it was also possible investors would be waiting to see what happens with capital gains tax and negative gearing.
Ray White Victoria chief auctioneer Luke Banitsiotis said for many sellers, not selling at auction might be the difference of as little as a few thousand dollars on their expectations — but they risked losing much more if they tried to hold off.
Ray White chief auctioneer Luke Banitsiotis says Melbourne sellers need to pay close attention to buyer numbers at their inspections — and their home’s price tag.
Melbourne’s auction sellers are being advised to listen to the market as it changes.
Mr Banitsiotis said with consumer confidence struggling broadly, and another interest rate rise possible next month, those who sold in April would likely be grateful — even if they gave a little ground to buyers.
“If you sell in May or June, in a correcting market, it will probably be for less than what you would have been able to sell for in April,” Mr Banitsiotis said.
The auctioneer said if home sellers weren’t sure, they should take note of buyers inspecting their homes. If you had one or two, that indicated you were well away from their expectations on price.
Getting five or more, but no offers, indicated you were very close to the right level — but might have to negotiate down.
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