Auction Market Largely Unaffected By Rate Rise Announcement
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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.

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RMIT expert says a conflation of factors is making the property market hard than ever to predict

By Robyn Willis
Thu, Oct 6, 2022 9:52am < 1 min

A leading property academic has described navigating the current Australian housing market ‘like steering a ship through a thick fog while trying to avoid obstacles’.

Lecturer in RMIT’s School of Property Construction and Project Management Dr Woon-Weng Wong said the combination of consecutive interest rate rises aimed at combating high inflation, higher property prices during the pandemic and cost of living pressures such as the end of the fuel excise that occurred this week made it increasingly difficult for those looking to enter or upgrade to find the right path.

“Property prices grew by approximately 25 percent over the pandemic so it’s unsurprising that much of that growth ultimately proved unsustainable and the market is now correcting itself,” Dr Wong says. “Despite the recent softening, the market is still significantly above its long-term trend and there are substantial headwinds in the coming months. Headline inflation is still red hot, and the central bank won’t back down until it reins in these spiralling prices.” 

This should be enough to give anyone considering entering the market pause, he says.

“While falling house prices may seem like an ideal situation for those looking to buy, once the high interest rates, taxes and other expenses are considered, the true costs of owning the property are much higher,” Dr Wong says. 

“People also must consider time lags in the rate hikes, which many are yet to feel to brunt of. It can take anywhere from 6 to 24 months before an initial change in interest rates eventually flows on to the rest of the economy, so current mortgage holders and prospective home buyers need to take this into account.” 

 

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