National Auction Market Stutters
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National Auction Market Stutters

Fewer listings and market distractions keep results stagnant.

By Terry Christodoulou
Mon, Mar 14, 2022 11:18amGrey Clock 2 min

The national auction market reported a clearance rate of 73.8% at the weekend – similar to the previous weekend’s 73.8% but well below the 85.3% recorded over the same weekend last year.

National auction numbers were lower at the weekend — with wild weather and Labour Day holidays driving the dip in numbers. The market saw 1585 homes listed for auction nationally compared to the 2377 of the previous weekend and well below the 1903 reported for the same Saturday last year.

Despite the meek showing, auction markets are set to return at full pace next weekend as regions recover from flooding and are free from holiday distractions.

The Sydney auction market recorded a clearance rate of 69.8% at the weekend – well below the 76.6% of the previous weekend and a stark comparison to the 90.6% recorded over the same weekend last year.

The NSW capital recorded 884 listings — which is up on the previous weekend’s 841 and well ahead of the 716 auctioned over the same weekend last year.

Sydney recorded a median price of $1,605,500 for houses sold at auction at the weekend – lower than the $1,915,000 reported over the previous weekend and 3.6% higher than the $1,550,000 recorded over the same weekend last year.

Melbourne’s market posted a clearance rate of 70.3% on Saturday – lower than last weekend’s 73.8% and remained well below the 81.5% recorded over the same weekend last year – a non-holiday weekend.

The Victorian capital reported 423 homes listed for auction, which is well down on the previous weekend’s 120 and significantly lower to last year’s non-holiday 9878 auctioned over the same weekend last year.

Melbourne recorded a median price of $1,008,000 for houses sold at auction at the weekend — lower than last weekend’s 1,170,000 but 2.9% higher than the $980,000 recorded over the same weekend last year.

Data powered by Dr Andrew Wilson, My Housing Market.



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How much income is required to service a mortgage? It depends on where you live

New research suggests spending 40 percent of household income on loan repayments is the new normal

By Bronwyn Allen
Thu, Apr 25, 2024 3 min

Requiring more than 30 percent of household income to service a home loan has long been considered the benchmark for ‘housing stress’. Yet research shows it is becoming the new normal. The 2024 ANZ CoreLogic Housing Affordability Report reveals home loans on only 17 percent of homes are ‘serviceable’ if serviceability is limited to 30 percent of the median national household income.

Based on 40 percent of household income, just 37 percent of properties would be serviceable on a mortgage covering 80 percent of the purchase price. ANZ CoreLogic suggest 40 may be the new 30 when it comes to home loan serviceability. “Looking ahead, there is little prospect for the mortgage serviceability indicator to move back into the 30 percent range any time soon,” says the report.

“This is because the cash rate is not expected to be cut until late 2024, and home values have continued to rise, even amid relatively high interest rate settings.” ANZ CoreLogic estimate that home loan rates would have to fall to about 4.7 percent to bring serviceability under 40 percent.

CoreLogic has broken down the actual household income required to service a home loan on a 6.27 percent interest rate for an 80 percent loan based on current median house and unit values in each capital city. As expected, affordability is worst in the most expensive property market, Sydney.

Sydney

Sydney’s median house price is $1,414,229 and the median unit price is $839,344.

Based on 40 percent serviceability, households need a total income of $211,456 to afford a home loan for a house and $125,499 for a unit. The city’s actual median household income is $120,554.

Melbourne

Melbourne’s median house price is $935,049 and the median apartment price is $612,906.

Based on 40 percent serviceability, households need a total income of $139,809 to afford a home loan for a house and $91,642 for a unit. The city’s actual median household income is $110,324.

Brisbane

Brisbane’s median house price is $909,988 and the median unit price is $587,793.

Based on 40 percent serviceability, households need a total income of $136,062 to afford a home loan for a house and $87,887 for a unit. The city’s actual median household income is $107,243.

Adelaide

Adelaide’s median house price is $785,971 and the median apartment price is $504,799.

Based on 40 percent serviceability, households need a total income of $117,519 to afford a home loan for a house and $75,478 for a unit. The city’s actual median household income is $89,806.

Perth

Perth’s median house price is $735,276 and the median unit price is $495,360.

Based on 40 percent serviceability, households need a total income of $109,939 to afford a home loan for a house and $74,066 for a unit. The city’s actual median household income is $108,057.

Hobart

Hobart’s median house price is $692,951 and the median apartment price is $522,258.

Based on 40 percent serviceability, households need a total income of $103,610 to afford a home loan for a house and $78,088 for a unit. The city’s actual median household income is $89,515.

Darwin

Darwin’s median house price is $573,498 and the median unit price is $367,716.

Based on 40 percent serviceability, households need a total income of $85,750 to afford a home loan for a house and $54,981 for a unit. The city’s actual median household income is $126,193.

Canberra

Canberra’s median house price is $964,136 and the median apartment price is $585,057.

Based on 40 percent serviceability, households need a total income of $144,158 to afford a home loan for a house and $87,478 for a unit. The city’s actual median household income is $137,760.

 

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11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

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