Home Auction Market Post-Election Surge

Our home auction market activity rebounded strongly at the weekend following the end of the lengthy federal election campaign and the re-election of the Morrison government.

The significant changes to property taxes as proposed by the Labor Party are clearly off the table which will aid in reviving recently subdued buyer and seller confidence.

The almost certain, near-term cut in interest as indicated by the RBA this week has also helped to bolster market confidence.

Both the Melbourne and Sydney property markets maintained their plus 60% auction clearance results of recent weekends despite the sharp increase in listings, an outcome which will also help to bolster market confidence.

Positive news will help to boost the late-autumn housing market before the typically quiet winter market conditions emerge.

Election Surge Lifts Melbourne Auction Market

The Melbourne property market recorded yet another solid home auction result at the weekend despite a surge in post-election listings.

Melbourne reported a clearance rate of 62.5% which was slightly lower than the previous weekend’s election day result of 63.5% but interestingly now higher than the 59.9% recorded over the same weekend last year.

Post-election auction numbers predictably surged at the weekend with 885 reported listed which was well ahead of last weekend’s 369 but below the same weekend last year’s 963.

This was the second highest weekend for auctions so far this year.

Melbourne reported a median auction price of $832,000 at the weekend which was lower than the previous weekend’s $859,000 but higher than the same weekend last year’s $807,500.

All Melbourne regions reported clearance rates above 60% at the weekend with the exception of the South East which was nonetheless close at 58.3%.

Auction buyer and seller confidence will be further boosted by the return of the Morrison government with Labor’s changes to property taxes now off the table.

More significant however is the sharp but welcomed policy U-turn by the RBA and APRA which will lead to lower mortgage rates and an easing in lending conditions – and about time.

Sydney Post-Election Auction Market Lifts

Sydney’s auction market surged at the weekend with a sharp rise in listings following the distractions of the last month.

584 homes were reported auctioned on Saturday which was well ahead of last weekend’s election day total of 181 and the highest for 6 weeks.

Numbers however were below the same weekend last year’s 665 and so far this year auctions are 31.3% lower than for the same period last year.

Sydney’s auction clearance rate however remained steady despite the listings bounce at 60.9% which was ahead of the previous weekend’s 59.0% and similar to the same weekend last year’s 62.3%.

Sydney’s median auction price of $1,100,000 at the weekend was higher than the previous weekends $965,000 but well below the same weekend last year’s $1,350,000.

Sydney’s Inner West and Lower North were again regional front-runners each reporting strong clearance rate results.

Home auction buyer and seller confidence will be boosted by the return of the Morrison government with Labor’s changes to property taxes now off the table.

More significant however is the sharp but welcomed policy U-turn by the RBA and APRA which will lead to lower mortgage rates and an easing in lending conditions – and about time.