Auction Markets Lower On Federal Election Day
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Auction Markets Lower On Federal Election Day

Clearance rates continue to track at year-low levels.

By Terry Christodoulou
Mon, May 23, 2022 9:20amGrey Clock 2 min

With buyers distracted by the federal election, property auction clearance rates were generally lower at the weekend across the country.

The national auction market reported a clearance rate of 71.4% at the weekend — the same as reported last weekend but lower than the 82.0% recorded over the same weekend last year. Clearance rates continue to track at year-low levels.

National auction numbers were predictably lower at the weekend due to distractions on election day. Only 1137 homes were reported listed compared to the previous weekend’s 2372 and well below the same weekend last year’s number of 2333.

In Sydney, there was a small lift in clearance rates, up to 68.9% at the weekend — higher than the 64.1% recorded last weekend but well down on the 81.5% recorded this time last year.

The lift in clearance rates can be attributed to only 335 homes being listed for auction. Lower than the 810 auctioned the weekend prior and well below last year’s efforts of 949.

Sydney recorded a median price of $1,600,000 for houses sold at auction at the weekend which was lower than the $1,690,000 recorded last weekend and 1.2% lower than the same weekend last year’s $1,620,00.

Melbourne’s home auction market weakened at the weekend, reported a year-to-date low of 63.8% — a drop from the 68.78% recorded over the previous weekend and well below the 76.9% recorded over the same weekend last year.

The Victorian capital reported 594 homes listed at the weekend – lower than the 1165 reported over the previous Super Saturday weekend and well below the 1117 listed over the same weekend last year.

Melbourne recorded a median price of $1,030,000 for houses sold at auction at the weekend which was lower than the $1,203,000 reported last weekend but 3.5% higher than the $995,500 recorded over the same weekend last year.

Data powered by Dr Andrew Wilson, My Housing Market.



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Leaders in Australia’s property industry are calling on the RBA to hit the pause button on further interest rate rises following yesterday’s announcement to raise the cash rate to 4.1 percent.

CEO of the REINSW, Tim McKibbin, said it was time to let the 12 interest rate rises since May last year take effect.

“The REINSW would like to see the RBA hit pause and allow the 12 rate rises to date work their way through the economy. Property prices have rebounded because of supply and demand. I think that will continue with the rate rise,” said Mr McKibbin.  

The Real Estate Institute of Australia  today released its Housing Affordability Report for the March 2023 quarter which showed that in NSW, the proportion of family income required to meet the average loan repayments has risen to 55 percent, up from 44.5 percent a year ago.

Chief economist at Ray White, Nerida Conisbee, said while this latest increase would probably not push Australia into a recession, it had major implications for the housing market and the needs of ordinary Australians.

“As more countries head into recession, at this point, it does look like the RBA’s “narrow path” will get us through while taming inflation,” she said. 

“In the meantime however, it is creating a headache for renters, buyers and new housing supply that is going to take many years to resolve. 

“And every interest rate rise is extending that pain.”

In a speech to guests at Morgan Stanley’s Australia Summit released today, Governor Philip Lowe addressed the RBA board’s ‘narrow path’ approach, navigating continued economic growth while pushing inflation from its current level of 6.8 percent down to a more acceptable level of 2 to 3 percent.

“It is still possible to navigate this path and our ambition is to do so,” Mr Lowe said. “But it is a narrow path and likely to be a bumpy one, with risks on both sides.”

However, he said the alternative is persistent high inflation, which would do the national economy more damage in the longer term.

“If inflation stays high for too long, it will become ingrained in people’s expectations and high inflation will then be self-perpetuating,” he said. “As the historical experiences shows, the inevitable result of this would be even higher interest rates and, at some point, a larger increase in unemployment to get rid of the ingrained inflation. 

“The Board’s priority is to do what it can to avoid this.”

While acknowledging that another rate rise would adversely affect many households, Mr Lowe said it was unavoidable if inflation was to be tamed.

“It is certainly true that if the Board had not lifted interest rates as it has done, some households would have avoided, for a short period, the financial pressures that come with higher mortgage rates,” he said. 

“But this short-term gain would have been at a much higher medium-term cost. If we had not tightened monetary policy, the cost of living would be higher for longer. This would hurt all Australians and the functioning of our economy and would ultimately require even higher interest rates to bring inflation back down. 

“So, as difficult as it is, the rise in interest rates is necessary to bring inflation back to target in a reasonable timeframe.”

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