Intensity Returns To National Auction Market
Kanebridge News
Share Button

Intensity Returns To National Auction Market

February auction market begins to heat up.

By Terry Christodoulou
Mon, Feb 7, 2022 10:12amGrey Clock 2 min

The home auction market has intensified into February with most capitals reporting a rise in buyer activity.

Off the back of a dour performance the previous weekend, Sydney and Melbourne reported sharply higher clearance rates at the weekend with the NSW capital breaking 80% with a clearance rate of 80.4%.

The national auction market reported a clearance rate of 79.1% at the weekend — higher than the 76.6% reported over the previous weekend yet lower than the 80.2% recorded over the same weekend last year.

National auction numbers surged at the weekend with 1362 homes listed for auction ahead of the 836 reported last weekend and up on the 1073 reported over the same weekend last year.

Sydney’s strong clearance rate was sharply higher than the 68.5% reported last weekend but still well below the 88.5% recorded over the same weekend last year.

However, the strong result comes despite a record day for February auctions with 563 homes listed for auction on Saturday — higher than last weekend’s 308 auctions.

Sydney recorded a median price of $1,760,000 for houses sold at auction at the weekend which was higher than the $1,380,000 reported over the previous weekend and 25.7% higher than the $1,400,000 recorded over the same weekend last year.

Melbourne reported a clearance rate of 74.0% on Saturday – higher than last weekend’s 68.5% but well below the 81.6% recorded over the same weekend last year.

Yet, despite a surge in listings from the previous week — 491 homes reported listed compared to the season opener of 250 — the weekend rate was the highest reported since November 13, last year.

Melbourne recorded a median price of $914,500 for houses sold at auction at the weekend which was higher than last weekend’s $873,000 but 1.7% lower than the $930,000 recorded over the same weekend last year.

Data powered by Dr Andrew Wilson, My Housing Market.



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
Money
Sam Altman’s Counter-Rebellion Leaves OpenAI Leadership Hanging in the Balance
By Berber Jin 20/11/2023
Lifestyle
Fisker Stock Tanks After Poor Earnings. EV Concerns Accelerate.
By Al Root 15/11/2023
Money
Macquarie’s 1H Profit Falls, to Launch Up to A$2 Billion Buyback
By Alice Uribe 03/11/2023
0
    Your Cart
    Your cart is emptyReturn to Shop