Auction Market Largely Unaffected By Rate Rise Announcement
Kanebridge News
Share Button

Auction Market Largely Unaffected By Rate Rise Announcement

The weekend saw a minor dip in the national clearance rate.

By Kanebridge News
Mon, Sep 12, 2022 9:56amGrey Clock 2 min

The capital city weekend auction market reported more solid early spring results despite yet another rate increase announced last week by the RBA.

The national auction market reported a clearance rate of 63.8% at the weekend which was slightly lower than the 64.7% reported last weekend but still well below the 80.5% recorded over the same weekend last year

National auction numbers were higher at the weekend with 1611 listings compared to last weekend’s 1566 — and again, significantly higher than the same weekend last year’s 1150.

The Sydney weekend auction market recorded another solid spring clearance rate at the weekend of 67.2% — well above the 64.2% recorded the previous weekend but still significantly lower than the 85.2% over the same weekend last year.

Auction numbers were marginally down, compared to the previous weekend with 603 reported listed compared to 653 — yet significantly higher than the 511 auctioned over the same weekend last year.

Sydney recorded a median price of $1,612,500 for houses sold at auction at the weekend which was lower than the $1,764,000 recorded last weekend and 5.9% lower than the same weekend last year’s $1,714,000.

Melbourne reported another steady spring auction clearance rate at the weekend, despite a surge in listings.

Melbourne reported a clearance rate of 62.2% on Saturday — lower than the previous weekend’s 64.3% and also lower than the 79.3% recorded over the same weekend last year.  

A total of 758 home were reported listed at the weekend — higher than the 683 reported over the previous weekend and higher than the 414 listed over the same weekend last year.

The Victorian capital recorded a median price of $1,040,000 for houses sold at auction at the weekend which was lower than the $1,077,000 reported last weekend and 2.7% lower than the $1,069,000 recorded over the same weekend last year.

Data powered by Dr Andrew Wilson, My Housing Market.



MOST POPULAR
11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

Related Stories
Property
How much income is required to service a mortgage? It depends on where you live
By Bronwyn Allen 25/04/2024
Property
A Dramatic London Home in a Former Chapel That Starred in ‘Call the Midwife’ Is Renting for £39,000 per Month
By LIZ LUCKING 24/04/2024
Property
On the Market for the First Time, This Hamptons Beach House Is Listed for Nearly $26 Million
By CASEY FARMER 23/04/2024
How much income is required to service a mortgage? It depends on where you live

New research suggests spending 40 percent of household income on loan repayments is the new normal

By Bronwyn Allen
Thu, Apr 25, 2024 3 min

Requiring more than 30 percent of household income to service a home loan has long been considered the benchmark for ‘housing stress’. Yet research shows it is becoming the new normal. The 2024 ANZ CoreLogic Housing Affordability Report reveals home loans on only 17 percent of homes are ‘serviceable’ if serviceability is limited to 30 percent of the median national household income.

Based on 40 percent of household income, just 37 percent of properties would be serviceable on a mortgage covering 80 percent of the purchase price. ANZ CoreLogic suggest 40 may be the new 30 when it comes to home loan serviceability. “Looking ahead, there is little prospect for the mortgage serviceability indicator to move back into the 30 percent range any time soon,” says the report.

“This is because the cash rate is not expected to be cut until late 2024, and home values have continued to rise, even amid relatively high interest rate settings.” ANZ CoreLogic estimate that home loan rates would have to fall to about 4.7 percent to bring serviceability under 40 percent.

CoreLogic has broken down the actual household income required to service a home loan on a 6.27 percent interest rate for an 80 percent loan based on current median house and unit values in each capital city. As expected, affordability is worst in the most expensive property market, Sydney.

Sydney

Sydney’s median house price is $1,414,229 and the median unit price is $839,344.

Based on 40 percent serviceability, households need a total income of $211,456 to afford a home loan for a house and $125,499 for a unit. The city’s actual median household income is $120,554.

Melbourne

Melbourne’s median house price is $935,049 and the median apartment price is $612,906.

Based on 40 percent serviceability, households need a total income of $139,809 to afford a home loan for a house and $91,642 for a unit. The city’s actual median household income is $110,324.

Brisbane

Brisbane’s median house price is $909,988 and the median unit price is $587,793.

Based on 40 percent serviceability, households need a total income of $136,062 to afford a home loan for a house and $87,887 for a unit. The city’s actual median household income is $107,243.

Adelaide

Adelaide’s median house price is $785,971 and the median apartment price is $504,799.

Based on 40 percent serviceability, households need a total income of $117,519 to afford a home loan for a house and $75,478 for a unit. The city’s actual median household income is $89,806.

Perth

Perth’s median house price is $735,276 and the median unit price is $495,360.

Based on 40 percent serviceability, households need a total income of $109,939 to afford a home loan for a house and $74,066 for a unit. The city’s actual median household income is $108,057.

Hobart

Hobart’s median house price is $692,951 and the median apartment price is $522,258.

Based on 40 percent serviceability, households need a total income of $103,610 to afford a home loan for a house and $78,088 for a unit. The city’s actual median household income is $89,515.

Darwin

Darwin’s median house price is $573,498 and the median unit price is $367,716.

Based on 40 percent serviceability, households need a total income of $85,750 to afford a home loan for a house and $54,981 for a unit. The city’s actual median household income is $126,193.

Canberra

Canberra’s median house price is $964,136 and the median apartment price is $585,057.

Based on 40 percent serviceability, households need a total income of $144,158 to afford a home loan for a house and $87,478 for a unit. The city’s actual median household income is $137,760.

 

MOST POPULAR
35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

Consumers are going to gravitate toward applications powered by the buzzy new technology, analyst Michael Wolf predicts

Related Stories
Lifestyle
Where single women are buying property in Australia — and why their purchase power matters
By Bronwyn Allen 05/04/2024
Lifestyle
Adventure Travel Is Increasingly Not Just for the Young
By JEN MURPHY 06/04/2024
Lifestyle
‘Too Many Hours Waiting for Gelato in Capri.’ America’s Affluent Travellers Head Home.
By SHIVANI VORA 11/03/2024
0
    Your Cart
    Your cart is emptyReturn to Shop