Flood Of Listings Hits The Auction Market
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Flood Of Listings Hits The Auction Market

Clearance rates hold firm despite the deluge.

By Kanebridge News
Mon, Nov 1, 2021 10:30amGrey Clock 2 min

Auction markets across the country surged this weekend with buyers and sellers enjoying the restriction-free access to housing markets following the easing of covid lockdowns.

The surge in listings had little effect on buyer activity with formidable results continuing in all capitals.

The national weekend clearance rate sat at above 80% for the eighth consecutive weekend and although lower than the previous weekend’s 84.7% is still well above the 73.9% reported over the same weekend last year.

National auction numbers were higher at the weekend – up from the previous Saturday’s 2048 to 2424 – and well ahead of the 1261 auctioned over the same weekend last year.

The Sydney market is back above 80% — bouncing back from the previous weekend’s 77.0% and also above the 79.1% for the same weekend last year.

The results comes despite a lift in auction numbers with 887 homes listed for auction – up on the previous weekend’s 721 and well above the 768 auctioned over the same weekend last year.

Auction numbers were the highest since the lockdown impacted market in early July.

Sydney recorded a median price of $1,900,000 for houses sold at auction at the weekend which was well above the $1,685,000 reported over the previous Saturday and 25.8% higher than the $1,510,000 recorded over the same weekend last year.

Melbourne continued its strong run out of lockdown with a clearance rate of 80.5% over the weekend – similar to the previous weekend’s 80.4% and higher than the 78.0% recorded over the same weekend last year.

A total of 1193 homes were listed for auction at the weekend — higher than the 994 reported over the previous weekend and well above the 395 auctioned over the same weekend last year.

Melbourne recorded a median price of $1,145,000 for houses sold at auction at the weekend which was higher than the $1,048,000 recorded over the previous weekend and 27.4% higher than the $898,500 recorded over the same weekend last year.

Auction markets continue to report strong results for most sellers despite a wave of new listings reflecting the recent end of lockdowns. Buyer depth however will be tested over coming weekends as the end of year rush-to-market by sellers continues.

Data powered by Dr Andrew Wilson, My Housing Market.

 



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Expert tips for prospective buyers looking to purchase a home in 2024.

By Josh Bozin
Fri, Apr 12, 2024 3 min

For aspiring homeowners, be it a first-time buyer, downsizer, or investor, picturing your idea of homeownership bliss is the easy part. But before deliberating on furniture choices or scouting for that perfect neighbourhood coffee, understanding your purchasing power stands out as the most important step in ensuring your success in homeownership.

And with the Australian property market gaining momentum in 2024, there’s never been a better time to come to grips with your financial options.

In 2023, amid the changing financial landscape that saw rising interest rates and the cost of living skyrocket, among other factors, the total amount borrowed for property purchases across Australia was estimated at $300.9 billion, a 12.7 percent decrease from the previous year, according to PEXA’s latest Mortgage Insights Report.

Each mainland state also experienced a decline in new lending, according to the report, with Victoria and New South Wales seeing the biggest drops to $84.1 billion and $109.5 billion, respectively.

While this trend reflects the repercussions of such financial hardships on the everyday Australian, John Morello, director and auctioneer at Jellis Craig, said we’re seeing renewed confidence in the property market during the first quarter of 2024, particularly in Melbourne.

“Auction clearance rates have started the year strongly and consumer sentiment is rising. This lift is driven by cooling inflation and an improved outlook on interest rates. At Jellis Craig, as with the rest of the market, we are experiencing an increase in volume of property compared to the same period in March last year (up 28% in 2024),” Mr Morello said.

“Melbourne’s property market, in particular, is showing its ongoing evolution and resilience.”

PEXA’s report revealed that, while borrowing saw a decrease in 2023 in Australia, Australians still invested $613.0 billion in property purchases in 2023. In 2024, purchasing confidence is only going up, as prospective first home buyers, seasoned downsizers, and savvy investors look to capitalise on a flood of new property hitting the market, coupled with the lowering of interest rates across the board.

“With more certainty in the economic outlook, along with an increase in volume of property available, we are seeing these factors translate to early signs of a boost in confidence in both buyers and sellers,” said Mr Morello.

“Further encouraging data shows that whilst there is more property available to purchase, more people are inspecting property, again indicating that demand has increased broadly across our marketplace.”

If you’re in the market for a new property, the biggest question you must ask yourself is how much house can I afford?

A great starting place is to speak with your mortgage broker or financial professional, who can guide you on your lending options. This is critical, as you need to know what your future repayment options might look like, and ultimately, what you will typically be able to afford.

A useful tool for judging whether you can afford a specific property is to factor in the 28/36 rule — a rough guide that suggests you should not spend more than 28 percent of your gross monthly income on housing, and no more than 36 percent on all debts. Another useful tool is the idea of a debt-to-income ratio (DTI); a formula whereby an individual can divide all of their monthly debt payments by gross monthly income to arrive at a number that one can measure as a way of managing monthly mortgage payments.

Mr Morello emphasised the need to understand affordability and what’s feasible for each individual when looking to make a purchase, no matter the budget, on a property in 2024.

“It’s pivotal to work out what you can afford. Get your finances in order. Consider all associated costs with buying, and research what concessions and grants are available,” said Mr Morello.

“It’s easy for individuals to begin the process today. Start actively searching potential properties on a weekly basis, and research areas you are interested in. Check weekly sales results, attend inspections and auctions, to get a feel for the process. Just remember, it’s important to be really comfortable in understanding your living expenses, and what the ongoing expenses will be once you have bought a property.

“For example, mortgage repayments, council rates, water, power, owners corp fees, insurances, maintenance costs; if you are buying as an investment, the Land Tax payable on that property which is an ongoing tax. There’s many factors to consider.”

To see what’s possible for your specific circumstances, visit our Finance Portal for specific tools, guides and tips—as well as our own mortgage calculator—to assist you on your property journey.

 

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