Buyers Shrug Off Worries In Auction Market
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Buyers Shrug Off Worries In Auction Market

Inflation and rate rise rumours no worry for buyers.

By Terry Christodoulou
Mon, Feb 14, 2022 9:41amGrey Clock 2 min

Another big weekend for auctions saw Sydney and Melbourne’s markets revive following a flurry of activity — closing out the highest reported clearance rates in both markets since last spring.

The national auction market reported a clearance rate of 81.6% at the weekend — higher than the 79.1% reported over the previous weekend, yet lower than the 84.0% marked over the same weekend last year.

It comes as the national auction figures ascended to 1977 auctions from the previous weekend’s 1362 — and well ahead of the 1391 reported the same weekend last year.

Sydney has reported another strong result of 79.5% at the weekend — slightly down on the 80.4% reported last weekend but still significantly below the 89.1% recorded over the same weekend last year.

Further, the NSW capital recorded 784 homes listed for auction at the weekend — up on the 563 listed the previous weekend and a February record.

Sydney recorded a median price of $1,835,000 for houses sold at auction at the weekend which was higher than the $1,760,000 reported over the previous weekend and 20.3% higher than the $1,525,000 recorded over the same weekend last year.

In Melbourne, buyers continued to engage in the market in consistent numbers.

The Victorian capital saw a clearance rate of 72.3% — lower than last weekend’s 74.0% and below the 79.8% recorded this time last year.

A total of 888 homes were reported listed for auction at the weekend – well above last weekend’s 491 but also significantly higher than the 698 auctions over the same weekend last year.

Melbourne recorded a median price of $1,090,000 for houses sold at auction at the weekend which was higher than last weekend’s $914,500 and 9.8% higher than the $992,000 recorded over the same weekend last year.

Data powered by Dr Andrew Wilson, My Housing Market.



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Ray White’s chief economist outlines her predictions for housing market trends in 2024

By Bronwyn Allen
Tue, Nov 28, 2023 2 min

Ray White’s chief economist, Nerida Conisbee says property price growth will continue next year and mortgage holders will need to “survive until 2025” amid expectations of higher interest rates for longer.

Ms Conisbee said strong population growth and a housing supply shortage combatted the impact of rising interest rates in 2023, leading to unusually strong price growth during a rate hiking cycle. The latest CoreLogic data shows home values have increased by more than 10 percent in the year to date in Sydney, Brisbane and Perth. Among the regional markets, price growth has been strongest in regional South Australia with 8.6 percent growth and regional Queensland at 6.9 percent growth.

“As interest rates head close to peak, it is expected that price growth will continue. At this point, housing supply remains extremely low and many people that would be new home buyers are being pushed into the established market,” Ms Conisbee said. “Big jumps in rents are pushing more first home buyers into the market and population growth is continuing to be strong.”

Ms Conisbee said interest rates will be higher for longer due to sticky inflation. “… we are unlikely to see a rate cut until late 2024 or early 2025. This means mortgage holders need to survive until 2025, paying far more on their home loans than they did two years ago.”

Buyers in coastal areas currently have a window of opportunity to take advantage of softer prices, Ms Conisbee said. “Look out for beach house bargains over summer but you need to move quick. In many beachside holiday destinations, we saw a sharp rise in properties for sale and a corresponding fall in prices. This was driven by many pandemic driven holiday home purchases coming back on to the market.”

3 key housing market trends for 2024

Here are three of Ms Conisbee’s predictions for the key housing market trends of 2024.

Luxury apartment market to soar

Ms Conisbee said the types of apartments being built have changed dramatically amid more people choosing to live in apartments longer-term and Australia’s ageing population downsizing. “Demand is increasing for much larger, higher quality, more expensive developments. This has resulted in the most expensive apartments in Australia seeing price increases more than double those of an average priced apartment. This year, fewer apartments being built, growing population and a desire to live in some of Australia’s most sought-after inner urban areas will lead to a boom in luxury apartment demand.”

Homes to become even greener

The rising costs of energy and the health impacts of heat are two new factors driving interest in green homes, Ms Conisbee said. “Having a greener home utilising solar and batteries makes it cheaper to run air conditioning, heaters and pool pumps. We are heading into a particularly hot summer and having homes that are difficult to cool down makes them far more dangerous for the elderly and very young.”

More people living alone

For some time now, long-term social changes such as delayed marriage and an ageing population have led to more people living alone. However, Ms Conisbee points out that the pandemic also showed that many people prefer to live alone for lifestyle reasons. “Shorter term, the pandemic has shown that given the chance, many people prefer to live alone with a record increase in single-person households during the time. This trend may influence housing preferences, with a potential rise in demand for smaller dwellings and properties catering to individuals rather than traditional family units.”

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