The property markets have had a lot to contend with lately and it's showing in a downward trend in auction clearance rates and in property price growth in general.
This week was a pre election Super Saturday with 2,372 properties taken to auction and the market delivered generally steady results.
Dr. Andrew WIlson reported a national auction market reported a clearance rate of 71.4% at the weekend which was much like last weekend's 71.3% but well below the 80.8% recorded over same weekend last year.
Of course, decreasing affordability in our 2 big capitals, a significant rise in fixed mortgage rates, rising variable rates, an upcoming election and the media full of stories or real estate Armageddon have dampened buyer enthusiasm, yet vendors are still hoping to get top dollar and this is being reflected in falling auction clearance rates.
Dr. Andrew Wilson of My Housing Market reported Adelaide was once again the stand-out performer with a preliminary auction clearance rate of 82.4%, from 174 auctions.
Other preliminary clearance rates (as reported by Dr. Andrew Wilson's Auction Insider) were:-
- Brisbane auction clearance rate- 67%
- Melbourne auction clearance rate - 68.7%
- Canberra auction clearance rate- 74.9%
- Sydney auction clearance rate- 64.1%
Sydney auction commentary
The Sydney preliminary auction clearance rate was a 64.1% ( much the same as last week's) but, of course, this will be revised lower to around the low mid 50%'s as the remaining auction results are collected.
Last week the final clearance rate for Sydney as reported by Domain was 53.1%, a reflection of falling buyer sentiment in Sydney
Of the 810 properties listed for auction this weekend 165 properties were withdrawn from sale - a sign of the challenges the Sydney market is experiencing, and these are counted as "passed in" meaning this will bring down the overall auction clearance rate.
Realestate.com.au reported that there were also 1,402 private sales in New South Wales over the last week (much like last week's 1,425) and, of course, many off-market Sydney property sales would not have been reported.
The following chart from Dr. Andrew Wilson of My Housing markets shows the long term trend of Sydney's auction clearance rate:
Dr. Andrew Wilson commented...
Sydney Market Holds the Line over Super Saturday
Sydney auction clearance rates were again steady with recent results unaffected by a wave of pre-Election Day listings - rates however continue to track at the lowest level this-year-so-far.
Sydney reported a clearance rate of 64.1% at the weekend which was similar to the 64.6% recorded last weekend but again significantly lower than the 82.9% recorded over the same weekend last year.
810 Sydney homes were listed for auction on Saturday which was significantly higher than the 577 auctioned over last weekend but well below the same weekend last year’s 990.
Sydney recorded a median price of $1,690,000 for houses sold at auction at the weekend which was higher than the $1,630,000 recorded last weekend and 3.0% higher than the same weekend last year’s $1,641,000.
The Northern Beaches recorded the top regional clearance rate on Saturday with 72.2% followed by the City and East 68.2% and the Upper North Shore 67.1%
The Central Coast reported the lowest clearance rate at the weekend at 51.1%.
The clearance rate for houses was 64.3%, with units lower this weekend at 63.3%.
Melbourne auction commentary
1165 properties were scheduled for auction this weekend in Melbourne.
Dr. Andrew Wilson's Auction Insider reported a preliminary auction clearance rate in Melbourne of a solid 68.7% but of course, this will be revised lower to the low 60%'s once the remaining auction results are collected.
Last week the final clearance rate for Melbourne as reported by Domain was 55.9%.
Only 93 properties were withdrawn from sale this weekend - a sign of the strength of vendor confidence in the market; and these are counted as "passed in" meaning this will bring down the overall auction clearance rate.
- Also read:8 ways into the property market with a small deposit
- Also read:10 most expensive suburbs in Melbourne
- Also read:10 most expensive suburbs in Sydney
- Also read:Latest property price forecasts for 2022 revealed. What’s ahead in our housing markets in the next year or two?
- Also read:The Prime Minister is betting the house on new incentives | Property Insiders [Video]
Realestate.com.au reported that there were also 1,144 private sales in Victoria over the last week (much the same as last week's 1,128) and, of course, many off-market Melbourne property sales would not have been reported.
The following chart from Dr. Andrew Wilson of My Housing markets shows the long term trend of Melbourne's auction clearance rate
Dr. Andrew Wilson commented...
Pre-Election Super Saturday Delivers for Melbourne Market - Despite Higher Rates
The Melbourne home auction market strengthened at the weekend despite a predictable surge in pre-election day listings.
The impact of the recent shock RBA interest rate rise appears to have steadied, with buyer and seller confidence indicated by overall solid sales activity.
Melbourne reported a clearance rate of 68.7% on Saturday which was higher than the this-year-so-far low clearance rate of 66.4% recorded over the previous weekend but lower than the 78.6% recorded over the same weekend last year.
1165 homes were reported listed at the weekend which was significantly higher than the 767 reported over the previous weekend and similar to the 1159 listed over the same weekend last year.
Melbourne recorded a median price of $1,203,000 for houses sold at auction at the weekend which was higher than the $1,075,000 reported last weekend and also 10.1% higher than the $1,093,000 recorded over the same weekend last year.
Melbourne’s South East reported the top regional clearance rate on Saturday with 80.0% followed by the Inner East 77.5% and the North East 71.0%.
The West reported the lowest regional rate at 54.8%.
The house clearance rate was 67.6%, with units higher again this weekend at 69.4%.
The following charts show the long term trends in Auction clearance rates and the number of properties listed for auction.
National auction numbers predictably surged at the weekend as sellers avoided the distractions of next Saturday’s Federal Election.
2372 homes were reported listed compared to the previous weekends 1667 and similar to the 2401 reported over the same weekend last year.
Melbourne, Brisbane and Adelaide reported higher number of properties listed for aution compared to the previous weekend with Sydney steady and Canberra falling sharply.
Weekend auction markets will pause next weekend for Election Day and resume the following Saturday for the final autumn weekend of selling with clearance rates likely to remain at the levels of recent weeks – regardless of the election result.
NOW READ: This week’s Australian Property Market Update
