June Auction Markets Finish On A High
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June Auction Markets Finish On A High

Sydney lockdowns could see a change in fortunes.

By Kanebridge News
Mon, Jun 28, 2021 10:27amGrey Clock 2 min

The auction markets continued to post extraordinary results despite the looming and eventuating COVID lockdown measures enacted in Sydney.

A total of 2553 homes were listed for auction in state capitals on Saturday which was lower than last weekend’s record June offering of 2888 – yet, well ahead of the 1150 auctioned over the same weekend last year.

Across the country, clearance rates were generally higher at the weekend, with a national clearance rate of 82.5%, marginally higher than last weekend’s 82.3% and well ahead of the 67.8% reported over the same weekend last year.

Despite Saturday’s national clearance rate being the highest in the past seven weeks, the outlook is cloudy with Sydney COVID lockdown now in full force.

Sneaking in before lockdown, Sydney’s recent weekend auction market produced more remarkable results with a clearance rate of 83.0% on Saturday. This result was higher than the previous weekend’s 80.8% and well ahead of the 68.5% recorded over the same weekend last year.

The NSW capital reported 958 auctions on Saturday which was lower than the previous weekend’s 1036 but well above the 529 recorded over the same weekend last year.

Sydney recorded a median price of $1,550,000 for houses sold at auction at the weekend which was lower than the $1,610,000 reported over the previous Saturday but 14.8% higher than the $1,350,000 recorded over the same weekend last year.

Melbourne’s auction market, with lockdown measures easing, looks to be rising.

A total of 1320 homes were listed to go under the hammer on Saturday, below last weekend’s June record 1566 but well ahead of the 527 auctioned over the same weekend last year.

Melbourne recorded a clearance rate of 79.0% – well ahead of the previous weekends 74.4% and the 61.5% recorded over the same weekend last year. This Saturday was the highest reported in the Victorian capital since May 8.

Further, Melbourne recorded a median price of $1,000,000 for houses sold at auction at the weekend which was higher than the $979,000 recorded over the previous weekend and 22.7% higher than the $815,000 recorded over the same weekend last year.

Data powered by Dr Andrew Wilson of 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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