Record May Auction Listings Bring Strong Results
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Record May Auction Listings Bring Strong Results

Pre-Budget home sellers took advantage of insatiable buyer’s appetite.

By Terry Christodoulou
Mon, May 10, 2021 10:54amGrey Clock 2 min

Auction results from Saturday, May 8, saw a number of sellers attempt to cash in on what is still a boomtime market.

A May record of 2563 auctions were reported in auction capitals on Saturday – an increase of 12.2% over the previous weekend and the second-highest offering of the year so far, only behind the Super Saturday auctions of Match 27.

Clearance rates in all capitals eased from the record-breaking March results, yet are still very strong in light of high auction numbers with an average clearance rate of 83.1% – just below the 83.3% of the previous weekend

The Auction markets will be further strengthened by the Federal Budget announcements which signal significant stimulus policies aimed directly at housing demand and first home buyers.

Sydney’s high autumn clearance rates have faded marginally compared to the results recorded in March. However, the market still favours the seller with a clearance rate of 83.5% posted in the harbour city, just below 84.6% and well above the 71.3% recorded this weekend last year.

A Sydney May record of 1014 auctions was reported on Saturday, with the city recording a median price of $1,650,000 for houses sold at auction at the weekend, which was 3.7% higher than the $1,595,000 reported over the previous Saturday and 34% higher than the $1,231,000 recorded over the same weekend last year.

Melbourne fared similarly with a month-high weekend clearance rate of 80.7%, up on the previous weekend’s 80.1% and well ahead of the COVID-impacted 48.2% recorded over the same weekend last year.

A total of 1248 homes were reported listed for auction on Saturday – well above the 1084 auctioned over the previous weekend.

Melbourne recorded a median price of $1,050,000 for houses sold at auction on the weekend, which was 4.9% higher than the $1,001,000 recorded over the previous weekend.

Data powered by Dr Andrew Wilson of MyHousingMarket.com.au



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First time buyers determined to enter the Australian property market are taking creative approaches as interest rates steady

By Bronwyn Allen
Thu, Mar 28, 2024 2 min

Aspiring first home buyers are increasingly pooling their resources, adopting new strategies and making compromises to get themselves onto the property ladder, according to research from Westpac. About 56 percent of buyers surveyed are planning to buy their first property jointly with their partner compared to 40 percent three years ago. Three in four buyers say they are willing to compromise on location, up nine percent from three years ago, and 47 percent are willing to pay lenders mortgage insurance to buy their first home sooner.

Additionally, one in two first home hopefuls are considering ‘rentvesting’, whereby they purchase an investment property first ahead of a home for themselves. In this scenario, buyers typically continue renting in expensive lifestyle locations where they want to live and buy an investment property in more affordable locations, often on the outskirts of major cities or in regional areas.

The 2024 Westpac Home Ownership Report, released this month, is based on a survey of 2,015 Australians conducted in January. The report revealed increasing intentions to buy among all types of buyers, with 44 percent intending to buy in the next five years, up from 35 percent in July 2023. This may reflect expectations that interest rates have peaked, with the Reserve Bank keeping rates on hold since December.

Among first home buyers specifically, there was a slight decline in purchasing intention over the next five years, with 86 percent delaying buying a home due to cost-of-living pressures. The survey also found that more people are planning to buy an investment property, which is reflected in recent finance data from the Australian Bureau of Statistics showing a 20 percent increase in the value of investor loans issued over the past year. Additionally, more people are planning to upsize their homes or renovate their existing homes.

Westpac managing director of mortgages Damien MacRae said first home buyers “are becoming more ruthless with their goals”. “They understand it’s a big task, but they are determined to break into the market and are willing to compromise to get there,” Mr MacRae said.

Buyers still prefer houses, but there has been a five percent decline in this preference since 2021 and a seven percent increase for apartments. Preference for a townhouse, or house and land packages, has increased markedly. “Buyers are casting their expectations wider, willing to compromise on location and are forgoing everyday luxuries like food delivery. They are also more inclined to relocate and move to apartment living.”

The latest Westpac-Melbourne Institute Consumer Sentiment Index released this week shows the ‘time to buy a dwelling’ index rose 4.9 percent to 77.8 out of 100 this month, which is a 15-month high, but still relatively weak overall. Buyer sentiment is notably stronger in Victoria at 84.3, with Westpac senior economist Matthew Hassan pointing to softening home values over the past four months.

In contrast, the NSW index is at 73.3 out of 100, likely reflecting affordability challenges in Australia’s most expensive market. “Nearly 70 percent of consumers expect housing prices to continue rising in the year ahead,” Mr Hassan added.

 

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