Our property markets are feeling the winter chills and the downtrend in our property markets continues as buyer and seller confidence wanes.
Sydney property prices dropped -0.3% from last week, dropped -2.2% last month, and up 0.8% over the last 12 months.
Melbourne property prices dropped -0.2% from last week, dropped -1.5% last month and down -0.2% over the last 12 months.
Brisbane property prices have no change from last week, dropped -0.9% last month and up 21.8% over the last 12 months.
Overall Australian capital dwelling prices decreased -1.4% last month but are 4.6% higher over the last 12 months.
This was of course the week of the third 50 point rate rise in a row, and while that might have kept the pressure on prospective buyers re-figuring their finance options, auction clearance rates held up over the weekend, in part because there was a decline in auction numbers.
The next big test for the housing market will be in the upcoming spring selling season in coming months, coming after further expected rate rises.
Further softness in markets would not surprise in the weeks and months ahead.
Here's what's happening to property prices...
- Sydney property prices dropped -0.3% from last week, dropped -2.2% last month, and up 0.8% over the last 12 months.
- Melbourne property prices dropped -0.2% from last week, dropped -1.5% last month and down -0.2% over the last 12 months.
- Brisbane property prices have no change from last week, dropped -0.9% last month and up 21.8% over the last 12 months.
Overall Australian capital dwelling prices decreased -1.4% from last month and 4.6% higher over the last 12 months.
Of course, these are "overall" figures - there is not one Sydney or Melbourne or Brisbane property market.
And various segments of each market are performing differently.
To help keep you up-to-date with all that's happening in property, here is my updated weekly analysis of data and charts as of 8th August 2022 provided by CoreLogic, and realestate.com.au.
The number of A-grade properties for sale in Australia is still in short supply
While there are more properties on the market for sale, there is still a shortage of A-Grade properties and these are selling quickly
Despite there being more houses on the market for sale at present, remember that buyers are sellers and sellers are buyers so in most cases each time a property is sold another buyer is out in the market looking for a new home.
The table below shows the tables are turning in favour of buyers with more properties coming onto the market giving them more choice, hence the lack of urgency.
Median property prices
At a national level, properties are taking slightly longer to sell than they were during the property boom of last year.
However we're still in a seller's market with the number of days to sell the property very low (a sign of the tight supply situation for good properties), and vendor discounting still at very low levels.
In general, houses are selling better than apartments, but the shortage of good properties on the market is seeing A-grade properties selling quickly with minimal discounting.
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Our Rental Markets
Our rental markets have been tightening further with vacancy rates for both houses and apartments extremely low across the country.
Weekend's auction clearance rates
The typically chilly mid-winter home auction market produced relatively steady results in most capitals.
1242 properties were listed for auction, considerably less than last weekend’s 1543 and, not surprisingly, this was well below the 1,904 auctions held on the same weekend last year.
With the media full of negative messages and the spectre of interest rates rising faster than many expected, discretionary vendors are losing confidence and not putting their properties up for auction.
Similarly, buyers are being cautious suffering from FOBI - fear of buying into this market.
Once again Adelaide reported higher clearance rates at the weekend with Melbourne still solid.
Brisbane however continues to record lower clearance rates.
Currently, we're finding more homes are being sold before auction as sellers rush to make a deal rather than risk not getting a sale as vendors are becoming less willing to test the marketplace under true auction conditions.
Other properties are being passed in at auction, but selling straight after on negotiation with the vendor post-auction. The auction clearance rate doesn't always reflect this.
And it's likely that we'll see falls in the auction clearance rates moving forward reflecting weaker buyer confidence, poor affordability and rising mortgage rates.
Dr Andrew Wilson of My Housing Market reported a national auction market clearance rate of 60.9% at the weekend which was lower than the 62.0% reported last weekend and still well below the 81.5% recorded over the same weekend the previous year.
Dr Andrew Wilson reported the following auction preliminary clearance rates for Saturday 6th August:
- Adelaide auction clearance rate - 72.5%
- Brisbane auction clearance rate - 46%
- Canberra auction clearance rate - 66.2%
- Melbourne auction clearance rate - 62.1%
- Sydney auction clearance rate- 57.8 %
Source of graphs and data: Dr Andrew Wilson's My Housing market, CoreLogic, REA
READ MORE: This weekend’s auction clearance results