National Clearance Rate Revels In Face Of Restrictions
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National Clearance Rate Revels In Face Of Restrictions

Despite lending restrictions announced by APRA, the auction market continues to perform.

By Kanebridge News
Mon, Oct 11, 2021 10:34amGrey Clock 2 min

National auction markets produced further strong results on Saturday despite the introduction of loan restriction from the financial regulator, APRA.

It comes as national auction numbers soar at the weekend, following last weekend’s holiday in most states. Melbourne was also bolstered by a sharp revival in listings following the recent easing of local covid restrictions on property inspections.

A total of 1858 homes went under the hammer national compared to the 254 auctions reported the previous Saturday – well ahead of the 948 listed this time last year. Of the properties auctions at the weekend, the national clearance rate recorded 86.1% – similar to the previous weekend’s 86.5%.

Sydney market continues to surge relentlessly recording an astonishing clearance rate at 86.6% at the weekend, just bellowed the previous weekend’s 87.1%. It is the 10th consecutive weekend the NSW capital has recorded clearance rates above 80% and six straight weekends above 85%.

In line with national trends, Sydney saw a rise in home’s listed, up to 611 homes compared to Saturday’s 455.

Further, Sydney recorded a median price of $1,712,500 for houses sold at auction at the weekend which was lower than the $1,870,000 reported over the previous Saturday but 22.3% higher than the $1,400,000 recorded over the same weekend last year.

Melbourne’s recent easing of property restrictions has seen a boost to the local housing market.

A wave of 932 homes were listed for auction at the weekend – significantly more than the 571 reported over the previous weekend and well ahead of the 57 auctions over the same weekend last year.

The boost in numbers saw the clearance fall to 76.6% – well below the previous weekend’s 80.1%.

Further, the easing of restrictions saw the auction withdrawal rate down to 12.9%, well below the rates seen through September which were well into the 20%.

Melbourne recorded a median price of $1,060,000 for houses sold at auction at the weekend which was slightly lower than the $1,100,000 recorded over the previous weekend but significantly higher than the $746,500 recorded over the same weekend last year

There is no end in sight to current weekend auction market results, although APRA has announced lending restrictions, this may only act to fuel runaway activity, bringing forward buyer demand.

Data powered by Dr Andrew Wilson, My Housing Market.


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Australian house values continue to fall – but the pace of decline has slowed

Data reveals house values have continued to decrease, but the rate has slowed as the RBA Board prepares to meet next week

Thu, Dec 1, 2022 2 min

House values continued to fall last month, but the pace of decline has slowed, CoreLogic reports.

In signs that the RBA’s aggressive approach to monetary policy is making an impact, CoreLogic’s Home Value Index reveals national dwelling values fell -1.0 percent in November, marking the smallest monthly decline since June.

The drop represents a -7.0 percent decline – or about $53,400 –  since the peak value recorded in April 2022. Research director at CoreLogic, Tim Lawless, said the Sydney and Melbourne markets are leading the way, with the capital cities experiencing the most significant falls. But it’s not all bad news for homeowners.

“Three months ago, Sydney housing values were falling at the monthly rate of -2.3 percent,” he said. “That has now reduced by a full percentage point to a decline of -1.3 percent in November.  In July, Melbourne home values were down -1.5 percent over the month, with the monthly decline almost halving last month to -0.8%.”

The rate of decline has also slowed in the smaller capitals, he said.  

“Potentially we are seeing the initial uncertainty around buying in a higher interest rate environment wearing off, while persistently low advertised stock levels have likely contributed to this trend towards smaller value falls,” Mr Lawless said. “However, it’s fair to say housing risk remains skewed to the downside while interest rates are still rising and household balance sheets become more thinly stretched.” 

The RBA has raised the cash rate from 0.10 in April  to 2.85 in November. The board is due to meet again next week, with most experts still predicting a further increase in the cash rate of 25 basis points despite the fall in house values.

Mr Lawless said if interest rates continue to increase, there is potential for declines to ‘reaccelerate’.

“Next year will be a particular test of serviceability and housing market stability, as the record-low fixed rate terms secured in 2021 start to expire,” Mr Lawless said.

Statistics released by the Australian Bureau of Statistics this week also reveal a slowdown in the rate of inflation last month, as higher mortgage repayments and cost of living pressures bite into household budgets.

However, ABS data reveals ongoing labour shortages and high levels of construction continues to fuel higher prices for new housing, although the rate of price growth eased in September and October. 

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