Strong results expected

While the vast majority of homes in Victoria are sold by private sale, vendors in regional Victoria are also experiencing strong results at auction.

In the year to March, new REIV data shows around 3,100 regional homes were auctioned in regional Victoria with more than 2,000 selling under the hammer. This was a 34 per cent increase in auction sales on the previous year while volumes rose 15 per cent over the same period in 2016/2017.

Greater Geelong accounted for almost half of the state’s annual auction activity with more than 1,411 homes going to auction, up 45 per cent on the previous year.

Auction sales in the municipality also increased a significant 53 per cent over the year with more than 1,115 homes selling under the hammer, delivering a clearance rate of 79 per cent.

Clearance rates are a key market indicator for homes sold at auction with high clearance rates indicating strong buyer competition in a particular area. Clearance rates above 70 per cent typically suggest that the market favours sellers.

The Macedon Ranges also recorded increased auction activity over the 12 months to March with just over 161 auctions held – an increase of 16 per cent on the same period in 2016/17. Of those homes that went to auction, a solid clearance rate of 69 per cent was recorded.

Auction volumes also rose considerably in the Surf Coast, where 158 homes were auctioned over the year – a 41 per cent increase on the same period last year. Vendors in the municipality achieved strong results under the hammer with a clearance rate of 75 per cent recorded.

Auctions were also popular in Ballarat and Campaspe with both municipalities recording around 135 auctions this year and clearance rates of 65 and 59 per cent respectively. Auction sales in these areas increased 17 and 50 per cent respectively on 2016/17 figures.

The Shire of Mitchell, north of Melbourne, also showed a strong improvement in auction activity with volumes increasing 80 per cent while sales under the hammer more than doubled their previous auction sales.

For access to weekly auction results by town and suburb, head to reiv.com.au/market-insights.