$600,000 over reserve in a painful market

David Morrell says bidding in these conditions is like going to the dentist – it will hurt and it will cost you.
Melbourne had another solid round of auction results after the Easter break.
Although the weekend clearance rate of 77.5 per cent was the lowest full weekend result since February it was nonetheless close to recent results and well above the rates recorded over the same period last year.
Buyer activity in the weekend auction market has clearly increased over recent months with the market tracking higher than where it finished last year when rates averaged below 70 per cent. The clearance rates remain at the highest levels since the strong market conditions of 2010.
Listing numbers were predictably higher than the 34 auctions conducted over Easter Saturday last weekend with a solid 562 homes going under the hammer.
Overall the auction market remains robust but much of the increase in buyer activity continues to be driven by the booming eastern suburbs regional markets. The outer east produced yet another stunning 90 per cent plus auction result at the weekend with a 90.2 per cent clearance rate, with 55 sales from 61 reported results. Next best was the popular inner east, also with a strong rate of 86 per cent, followed by the inner city with 81.3 per cent; the north east 81.2 per cent; the north 78.6 per cent; the inner south 78.3 per cent; the west with the highest sales at 61 but a clearance rate of 69.3 per cent; and the south east with 60.9 per cent.
The combined eastern suburbs clearance rate was 85.5 per cent at the weekend and well ahead of the remainder of the Melbourne's suburban regions at just 74.7 per cent. 
Notable sales reported at the weekend included a five-bedroom home at 3 Edwin Road, Templestowe, sold for $3.1 million by Jellis Craig, another five-bedroom home at 1 Nerolie Court, Wantirna South, sold for $2.21 million by Ray White Wantirna, a three-bedroom home at 1/96 Campbell Road, Hawthorn East, sold for $1,915,000 by Jellis Craig and a four-bedroom home at 24 Cudmore Street, Essendon, sold for $1,901,000 by Nelson Alexander.
The most expensive property reported sold at auction at the weekend was a three-bedroom home at 162 Page Street, Middle Park, sold for $3,375,000 by Marshall White. The most affordable property reported sold at the weekend was a one-bedroom unit at 18/54 Balston Street Balaclava sold for $270,000 by Gary Peer and Associates.
For a list of weekend auction results in Melbourne click here Melbourne auction results Saturday April 11.
The Melbourne weekend home auction market resumed after the Easter break at the weekend reporting yet another solid clearance rate although slightly below recent weekend results.
Auction listings will rise again next weekend with over 1000 homes scheduled to go under the hammer providing a sturdy test for the market. The following weekend however the market will pause again for the centenary of ANZAC Day with relatively low numbers of auctions listed.
Although the Melbourne remains solid overall underlying regional results continue to point to a multiple speed market with the eastern suburbs clearly and consistently ahead of the rest.
Dr Andrew Wilson is Domain Group Senior Economist. Twitter@DocAndrewWilson