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This week’s Australian Property Market Update – Latest Data, State by State August 15th, 2022 - featured image
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This week’s Australian Property Market Update – Latest Data, State by State August 15th, 2022

key takeaways

Key takeaways

Our property markets are feeling the winter chills and the downtrend in our property markets continues as buyer and seller confidence wanes.

But there are early signs that the market is looking for a bottom as auction clearance rates have risen despite more properties being offered for sale

Sydney property prices dropped -0.5% from last week, dropped -2.0% over the past 28 days, and dropped -0.2% over the last 12 months.

Melbourne property prices dropped -0.3% from last week, dropped -1.2% over the past 28 days and are down -0.7% over the last 12 months.

Brisbane property prices dropped -0.5% from last week, dropped -1.2% over the past 28 days but are up 20.5% over the last 12 months.

Overall Australian capital dwelling prices decreased -1.3% over the past 28 days and 3.8% higher over the last 12 months.

While the now-familiar story of falling property prices continues, it seems that the falls were a little less vigorous.
In fact there are early signs that it's possible the market is looking for a bottom as auction clearance rates have risen for the third week in a row despite more properties being offered for sale.

Auction listings rose 9 per cent over the previous week, a forerunner to the traditional spring selling season.

Yet despite the greater supply, according to Corelogic the preliminary clearance rate hit 61.5 percent from the 1603 home that were listed for auction.

That result is 2 percentage points better than a week earlier and the first time since June that the preliminary rate has passed 60 percent.

It seems that buyers are seeing value in the market and are not prepared to wait to see if prices fall further.

Finance figures suggest that there are more first home buyers and an increasing number of investors who are attracted by the surging rents.

The next big test for the housing market will be in the upcoming spring selling season in the coming months, coming after further expected rate rises.

In the meantime, rents continued to increase as we're now experiencing tight markets across the country.

On a positive note, it's likely that this interest rate hiking cycle may be "short and sharp", with financial markets and many economic forecasters now factoring in inflation peaking at the end of this year and interest rate occurring in the second half of next year.

Here's what's happening to property prices...

  • Sydney property prices dropped -0.5% from last week, dropped -2.0% over the past 28 days, and dropped -0.2% over the last 12 months.
  • Melbourne property prices dropped -0.3% from last week, dropped -1.2% over the past 28 days and down -0.7% over the last 12 months.
  • Brisbane property prices  dropped -0.5% from last week, dropped -1.2% over the past 28 days but are up 20.5% over the last 12 months.

Overall Australian capital dwelling prices decreased -1.3% over the past 28 days and are 3.8% 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.

1 Weekly Change

2 Monthly Change

3 12 Month Change

Monthly Change In Hvi 15 August

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 15th 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.

Capital City Properties Listed For Sale

Listings 12 Month Change

Median property prices


Median House Prices

Median House Prices

Number Of Homes For Sale Combined Capital Cities

READ MORE: The latest median property prices in Australia’s major cities


Vendor Metrics

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.

vendor metrics

vendor metrics

vendor metrics

ALSO READ: Latest property price forecasts revealed. What’s ahead in our housing markets in the next year or two?


Our Rental Markets

Our rental markets have been tightening further with vacancy rates for both houses and apartments extremely low across the country.

Rents August 2022

Weekend's auction clearance rates

This weekend's auction markets produced divergent results with most markets recording the highest clearance rates for months, however, Brisbane and Canberra auction clearance rates tanked.

1335 properties were listed for auction, a few more than last weekend’s 1243 but, not surprisingly, this was well below the 1,551 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.

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.

Dr Andrew Wilson of My Housing Market reported a national auction market clearance rate of 58.3% at the weekend which was lower than the 60.9% reported last weekend and still well below the 78.2% recorded over the same weekend last year

Dr Andrew Wilson reported the following auction preliminary clearance rates for Saturday 6th August:

  • Adelaide auction clearance rate - 85.9%
  • Brisbane auction clearance rate - 40.6%
  • Canberra auction clearance rate - 33.8%
  • Melbourne auction clearance rate - 65.7%
  • Sydney auction clearance rate- 65.7 %

National Auction Listing Trends

National Auction Clearance Trends

 

Source of graphs and data: Dr Andrew Wilson's My Housing market, CoreLogic, REA

READ MORE: This weekend’s auction clearance results

About Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media. Visit Metropole.com.au
55 comments

Colin, Brett Warren wrote a blog on this topic here and Ken Riass will have one published in the next few days

0 replies

Please give me an update on QLD Land Tax legislated increases.

1 reply

Sue median price is one of the most reported stats, but one of the least accurate - please read why not to trust median prices

0 replies
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