The REIV has released data that reveals, for the first time, the suburbs where auctions are the main method of sale and those where private sales are. This data, presented in an online clickable map, is an invaluable resource for all real estate agents and vendors.
The data can assist you in making the decision about what is the most appropriate sales method for your property.
Mapping out auction hot spots
The maps clearly show that auctions are the most popular sales method in the inner city whilst in the outer suburbs most sales are conducted privately. This in part explains why the median price of a home sold at auction is higher than one sold at private sale as residential property is much more expensive in the inner suburbs.
Whilst overall auction sales have represented around 22 per cent of all sales in Melbourne this year, there are some suburbs with a higher number and some with less.
Clear trend towards private sales
It is also the case that clearance rates tend to be higher in the suburbs where auctions are more prevalent.
Analysis of the data over 2010 and 2011 shows a clear trend towards private sales as the level of competition dropped. This highlights that auctions work better when there is a high level of demand, generally or for a specific property.
When teamed with data showing weekly clearance rates this information is an invaluable and unique resource for all those active in the residential real estate market.