Revitalised Auction Markets Surge After Holiday Break

Home auction markets reported generally solid to strong results for most sellers at the weekend upon resumption of full activity following the previous weekend’s Queens Birthday Holiday break.Andrew Wilson

Sydney and Melbourne continue to record their highest local clearance rates for over a year with Sydney auction clearance rates remarkably surging beyond 70 percent for the first time since 2017.

Although listings numbers remain comparatively subdued, buyer confidence has certainly been revitalised reflecting the long-overdue cut in official interest rates announced recently.

Buyer appetite will likely remain unsatisfied however over coming weekends with the winter market recess approaching and fewer homes offered for sale.

But clearance rates at these latest levels – if sustained, are likely to put upward pressure on house prices.

 

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Sydney Auction Clearance Rate Soars to 2 Year High

Sydney’s home auction market rebounded strongly at the weekend following last weekend’s holiday pause, recording its highest clearance rate for nearly 2 years Sydney’s 71.1% result was higher than last weekend’s 58.6% and also higher than the same weekend last year’s 56.4%.

Buyer confidence has gradually risen this year, but has soared since the federal election and the recent announcement of an official cut in interest rates.

Saturday’s result was the highest for a full weekend since November 2017.

Seller numbers however remain subdued with 471 homes reported listed for auction on Saturday which although predictably higher than the previous holiday weekend’s 211 remained as usual well below the 593 auctioned over the same weekend last year.

Sydney’s median auction price of $1,070,000 at the weekend was also lower than the same weekend last year’s $1,125,000.

Sydney’s Inner West, North West and Upper North Shore all reported strong results at the weekend with clearance rates over 80%.

All regions however recorded rates above 50% reflecting an emerging market consistency Rising buyer activity is set to be maintained during winter although choices will as usual be restricted until the typical spring seller.

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Melbourne Auction Market Revival on Track

Melbourne recorded yet another solid auction clearance rate at the weekend with this year’s local market revival clearly remaining on track.

Melbourne’s weekend rate of 65.8% was higher than the previous weekend’s holiday impacted 63.7% and again well above the 59.4% recorded over the same weekend last year.

The Melbourne property market has now recorded clearance rates above 60% for six of the past 7 weekends with the underlying trend continuing to rise.

Auction listings however remain subdued with just 643 homes reported on Saturday which although predictably higher than the previous weekends 173 was again well below the 852 reported over the same weekend last year.

Melbourne reported a median auction price of $760,000 at the weekend which was lower than the same weekend last year’s $800,000.

All Melbourne regions reported clearance rates above 60% at the weekend with the exception of the West, with the Outer East and North top performers with 73.9% and 72.1% respectively.

Recent rising buyer activity is set to be maintained during winter although choices will as usual be restricted until the typical spring seller revival emerges.

If this type of auction clearance rate continues this will start to put pressure on house prices in Melbourne.
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Dr. Andrew Wilson

About

Dr Andrew Wilson, of www.MyHousingMarket.com.au is Australia’s leading property economist.


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