Clearance Rates Are Driven Down By Flood Of Listings
Kanebridge News
Share Button

Clearance Rates Are Driven Down By Flood Of Listings

It’s still a seller’s market.

By Kanebridge News
Mon, Nov 29, 2021 9:06amGrey Clock 2 min

The late season deluge of listings is predictably continuing to push clearance rates down in capitals across the country.

The national clearance rate fell to a three-month low with only Canberra reporting a result above 80% at 87.6% from 112 auctions over the weekend.

The national weekend clearance rate of 76.8% was well below the previous week’s 82.3% and just above the 75.4% recorded over the same weekend last year.

National auction numbers soared again at the weekend rising from the previous Saturday’s 2764 to November record 3165 — and well ahead of the 1740 auctioned over the same weekend last year.

Sydney clearance rates rise despite another record November auction day.

The NSW capital recorded a clearance rate of 77.2% at the weekend which was higher than the previous weekend’s 76.3% but now lower than the 80.8% recorded over the same weekend of 2020.

A record 1234 homes were listed for auction on Saturday — well ahead of the previous weekend’s 1075 and significantly higher than the 781 auctioned over the same weekend last year.

Sydney recorded a median price of $1,702,000 for houses sold at auction at the weekend which was lower than the $1,761,000 reported over the previous Saturday but 21.5% higher than the $1,401,000 recorded over the same weekend last year.

Melbourne’s weekend auction market concluded November with a near record number of listings with 1518 homes listed for auction — well ahead of the 1275 reported the previous weekend and significantly higher than the 736 auctioned over the same weekend last year.

The Victorian capital reported a clearance rate of 69.8% on Saturday which was lower than the previous weekend’s 72.5% and also lower than the 75.6% recorded over the same weekend last year.

Melbourne recorded a median price of $1,119,000 for houses sold at auction at the weekend which was higher than the $1,064,500 recorded over the previous weekend and 12.8% higher than the $992,000 recorded over the same weekend last year.

Data powered by Dr Andrew Wilson, MyHousingMarket.



MOST POPULAR

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

Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’

Related Stories
Property
Greener Homes, Living Alone And Ongoing Rate Pain
By Bronwyn Allen 28/11/2023
Property
Why Stars Are Renting Out Their Homes for Dirt Cheap
By ASHLEY WONG 28/11/2023
Property
London’s Luxury Home Market Has Been Dragging for Years. These Sellers Are Diving in Anyway.
By RUTH BLOOMFIELD 24/11/2023
Greener Homes, Living Alone And Ongoing Rate Pain

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.”

MOST POPULAR

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

Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’

Related Stories
Property
More home buyers take up government help to purchase
By Bronwyn Allen 19/10/2023
Property
Return to Work Is Coming for Your Pandemic-Era Home
By LIBERTINA BRANDT 24/11/2023
Lifestyle
Room to breathe at the Bend
By Belinda Aucott 10/11/2023
0
    Your Cart
    Your cart is emptyReturn to Shop