How big really is spring? Robert Larocca

There is a general assumption that home owners wait for spring to sell up and as a result, this then creates a busy few months, particularly for Victoria’s auctioneers. But is it really true and what will it mean for spring this year?

Recent analysis by RP Data shows that it is true; however the extent of the change differs from year to year.

Over the last five years there has been an average of 29% more homes listed for auction in spring than in the preceding three months in Melbourne.

Some years have been bigger than others. For instance in 2009, there were 54% more auctions in spring than previously, however in 2010, it was only 12%. These differences simply reflect changing economic circumstances that have a direct effect on the market. In this case, it was the impact of higher interest rates, the GFC and then market stimulus in response to the GFC.

Despite these yearly differences the theme is clear; that there are more sellers and more choice for buyers in spring.

This is certainly shaping to be the case this year with the lead up to spring featuring higher listing volumes than was the case in each of the last five years with the exception of 2010.

It is also the case that the increase in stock this year is being matched by more buyers resulting in a more buoyant market, increased competition and higher prices.

The question of whether this is representative of the private sale market, where there are more sales will be the subject of another article.

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Robert Larocca is Victorian housing market specialist for RP Data.

Robert Larocca

Robert Larocca

Robert Larocca is Victorian housing market specialist for CoreLogic RP Data.

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