Melbourne geared up for the biggest auction weekend so far this year with more than 1,500 homes going under the hammer.

Buyers were spoilt for choice with more than 1,420 homes in 341 suburbs going to auction on Saturday alone.

REIV President Joseph Walton said the 2017 auction market is one of the strongest in recent years with volumes up 13 per cent on the same period last year.

“Multiple auction records fell in February when more than 3,200 homes went to auction and close to 2,570 sold under the hammer,” he said.

“High auction volumes have continued throughout March with the current clearance rate of 79 per cent signalling ongoing buyer and vendor confidence.”

Mr Walton added that the solid start to the year followed the strongest December in the state’s history – in terms of both auction volumes and sales.

“The 2016 auction market remained buoyant right up until Christmas eve with low interest rates and high clearance rates encouraging more vendors to sell their homes well after the traditional spring selling season.”

After this weekend more than 7,580 homes would have been auctioned this year, up from 6719 for the same period in 2016.

A further 1,000 auctions are scheduled next weekend.

Prominent Melbourne property identity, Jeff Grochowski the principal of Accrue Real Estate provided an insight into the drivers of demand in Melbourne.

"Population growth is the key driver of Melbourne property prices. The demand for real estate exceeds the current supply. I do not see a change in that situation anytime soon as the government is bringing in hundreds of thousands of migrants each year. Whether it is investors buying units to offer to migrants and the existing population or existing owners moving up on the property ladder, "property is king" in Melbourne."

"The banks are not stopping lending and the only change appears to be the interest rates being charged on new interest only loans to investors. We recommend that investors spend a generous amount of time conducting research on past rates of growth, tenant demand, building design, body corporate fees and the amenity of the areas that they are thinking of buying into. Any or all of these factors affect the capital growth of any property."

TOP AUCTION LOCATIONS LAST WEEKEND

 TOP AUCTION SUBURBS BY VOLUME - YTD

TOP AUCTION SUBURBS BY SALES - YTD