Melbourne auction clearance rate back in step with consumer confidence: REIV

Melbourne auction clearance rates appear to be back in sync with changes in consumer sentiment, having diverged noticeably in the last six months of 2011.

From July to December last year Melbourne clearance rates dipped below 60% despite consumer confidence (as measured by the Westpac-Melbourne Institute) rising as the RBA cut rates in November and December

The divergence can be seen in the graph (below) included in the Real Estate Institute of Victoria’s (REIV) June 2012 property report.

This divergence suggests Melbourne buyers were less confident about the economy than the overall national mood and holding off purchasing at auction.

Since the start of the year, auction clearance rates (and Melbourne buyer sentiment) appear to be back in synch with consumer sentiment, rising modestly in tune with the Westpac-Melbourne index.

The gaps in the graph indicate the Easter selling period when sales spike and detract from the actual trend, explains Robert Larocca, spokesperson for the REIV.