The Melbourne housing market is expected to pick up this year, with strong auction clearance rates and increased buyer activity, according to the latest market report from Australian Property Monitors (APM).
This is despite there being a big backlog of properties listed for sale and properties taking more than a month longer than in the past to sell.
The latest report shows that average days on market in Melbourne increased from 102 days a year ago to 112 days as of February 2013 – well above the long-term average of 73 days.
According to APM, there are 42,000 properties listed for sale in Melbourne, nearly 4% less than a year ago, but still 27.5% higher than the long-term trend.
However, the average discount required to sell a property has reduced from 7.3% to long-term average of 6.5%.
Auction clearance rates are also significantly higher than over the same period 12 months ago, increasing from 61% to 68%, above the long-term trend of 63%.
APM says properties in middle-ring, mid-price range suburbs are back in demand.
“Listing numbers are also on the rise in Melbourne as sellers engage a market increasingly buoyed by a growing sense of optimism,” says APM.