This weekend’s auction results – Another strong weekend for auction clearance rates | Saturday December 7th

Auction clearance rates around Australia were strong once again this weekend.

The year is finishing with auction markets producing remarkable results compared to last year with clearance rates sharply higher and increases in sales volumes, sales turnover and auction prices.

Sydney produced another very strong performance recording an 79% clearance rate.

Melbourne auction clearance results were the same as last week, a strong clearance rate of 74% despite the fact that almost 1,282 properties went to auction.

The following graphic from Domain shows how our markets performed on Saturday 7th December.

Auction results Sydney Melbourne Brisbane Adelaide Canberra

 

 

Auction volumes have now peaked and are falling away as we head towards the end of the year.

But lower interest rates and banks bigger appetite for lending at a time of increased consumer sentiment and confidence are driving our property markets.

This reflects what our teams at Metropole’s offices in Melbourne, Sydney and Brisbane are finding on the ground – increased buyer enquiry and strong general interest in our housing markets because of the expectation of continual rising prices. ⠀

The prospect of easier access to finance, falling interest rates and positive media has boosted buyer confidence, driving strong auction results across Australia.

Here are the auction clearance rates as reported by Domain

Auction results Sydney Melbourne Brisbane Adelaide Canberra

 

 

Melbourne real estate auction results

The preliminary auction clearance rate for Melbourne as reported by Domain today was a strong 74% considering the number of properties (1,282) put to auction this weekend,

So far only 944 results have been reported and 58 properties were withdrawn from sale.Mobile Melbourne

The final clearance rate is likely to drop to around 67% – 70 %, much the same as last weekend’s final auction clearance rate which was revised to 68%.

Realestate.com.au reported that there were also 1,053 private sales in Melbourne this week, the same as the number reported last week and similar to previous weeks

The year started with a typical Melbourne auction clearance rate in the 50%’s so there has been a significant increase in sentiment, especially since after the Federal election.

A year ago in 2018 the auction clearance rate was 41 % and 1,029 properties were listed for sale by auction.

In 2017 (just as the Melbourne property market entered its slump phase) the clearance rate was  61% with 1487 properties listed for auction.

The following graph from Dr. Andrew Wilson of Auction Insider clearly shows how things have changed over the last few years.

 

 

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Sydney real estate auction results

The preliminary auction clearance rate for Sydney as reported by Domain today was a very strong 79% with 806 properties listed for sale under the hammer around 10% less than last weekend.Metropole Sydney

So far 530 results were reported and significant number – 60 properties were withdrawn from sale.

The final clearance rate is likely to drop to around 71%- 73% – much the same as last weekend’s final auction clearance rate which was revised to 73%.

This year started with a typical Sydney auction clearance rate in the low 60%’s, so there has been a significant increase in sentiment.

Realestate.com.au reported that there were also 1,389 private sales in Sydney this week  – much the same as been reported for the last month or so.

A year ago in 2018 the auction clearance rate was 40% on 717 auction listings.

In 2017 the clearance rate was 49% with 776 properties listed for auction.

The following graph from Dr. Andrew Wilson of Auction Insider clearly shows how things have changed.

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Commentary:

Both Melbourne and Sydney home auction markets continue their strong trends.

Buyer and now seller confidence has clearly regenerated with results continuing to track well above those recorded a year ago, but the auction clearance rates are flattening a little.

There is no mistaking it – there is a lot of energy in the markets of our 3 big capital cities.

The latest economic news however remains underwhelming with the jobless rate rising, employment falling and wages growth declining – all likely to contribute to another cut in interest rates next February which will certainly help to keep housing markets ticking over.

These trends reflect what our teams at Metropole’s offices in Melbourne and Sydney are finding on the ground – increased buyer enquiry and general interest in our housing markets because of the expectation of rising prices.

The number of properties listed for auction is now levelling off as we reach the end of the year and these numbers still remain low compared the “good old days” (2013-17) but we can expect more properties to go to auction now as vendors feel more comfortable that their homes are likely to sell.

Buyers are back with a little FOMO (Fear Of Missing OUT) now that the media keeps reporting that dwelling values in Sydney and Melbourne have risen in each of the past two months ending a near two-year slide that saw prices tumble 15% from their July 2017 peak in Sydney and around 12% in Melbourne.

The following graph from the ANZ bank shows how in previous cycles rising dwelling prices followed on from rising auction clearance rates, however tighter credit and soft economic conditions will constrain property price growth as Melbourne and Sydney regain their lost ground.

house prices auction results

 

With 3 interest rate cuts this year  and another almost certain early next year, the markets will continue to strengthen.

See the graph from ANZ below which shows how interest rate cuts (red squares) led to rising property values in previous cycles.

If cheaper mortgage rates lead to rising property values, this will create a policy dilemma for the RBA which doesn’t really want this to occur, but clearly its focus is on jobs creation.

rate cuts drive our markets

Commentary by Dr. Andrew Wilson

Andrew Wilson

Surging Summer Auctions No Barrier To Hot Markets.
Confident sellers continue to test weekend auction markets in higher numbers with more strong results as this year’s action draws to an end.
Although auction numbers were again generally higher than the same time last year, clearance rates remained robust, reflecting continued solid competition for property.
This Spring’s booming auction market – particularly in Sydney and Melbourne, has predictably translated into heady prices growth at the highest levels in years.
The following tweet from Shane Oliver, chief economist of AMP clearly shows the market trends.
Shaneoliver

 

Some interesting facts courtesy of  Dr. Andrew Wilson

The following charts clearly show the strength of the Melbourne and Sydney auction markets as at the end of last month – November

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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 his opinions are regularly featured in the media. Visit Metropole.com.au


'This weekend’s auction results – Another strong weekend for auction clearance rates | Saturday December 7th' have 8 comments

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    November 24, 2019 Raj

    Hi Michael, would you help people from NZ to invest in the residential property or your services are only limited to Australians?
    Thanks Raj.

    Reply

      Michael Yardney

      November 24, 2019 Michael Yardney

      Raj

      Yes we help New Zealanders and we understand the special regulations that pertain to them – we’d love to help you – please leave your details here

      Reply

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    October 7, 2019 Shirley Lee

    Hi Michael
    Thank you very much for your insight!
    I am looking for an apartment in Clayton for investment with a budget of $550,000. I plan to rent it to the students in Monash University. Do you consider it as a good investment?
    Please give me some comments!
    Shirley

    Reply

      Michael Yardney

      October 7, 2019 Michael Yardney

      Shirley – Clayton is not on my radar and students are not the best tenants – that’s a good budget – you could do a lot better

      Reply

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    September 29, 2019 Trish Walls

    Are there any statistics collected or reported for the Gold Coast anywhere?

    Reply

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    September 2, 2019 Jeff Wright

    Thank you for this regular information re Auctions and auction clearance rates.
    But why do you continually leave Perth out !?

    Reply

      Michael Yardney

      September 2, 2019 Michael Yardney

      Jeff becuase of the very few auctions occuring in perth – the main providers of statistics don’t report Perth auctions

      Reply


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