Spring Auction Markets Start On The Front Foot
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Spring Auction Markets Start On The Front Foot

Clearance rates rise given a lack of stock while Sydney goes on a tear.

By Kanebridge News
Mon, Sep 6, 2021 10:17amGrey Clock 2 min

The spring selling season commenced with most capitals continuing to record generally strong results for sellers.

The total national auction numbers fell sharply at the weekend as the market saw a steep decline in Melbourne listings. Only 1392 auctions were reported on Saturday – the lowest non-holiday weekend total since early February.

Auction listings were also lower in Adelaide (108, down from 114) and Canberra (64, down from 85) when compared the previous weekend.

As a result of a fall in listings, the national clearance rate was higher at the weekend – increasing from the previous Saturday’s 76.2% to 79.1%.

In Sydney, the auction market surged into spring with both higher clearance rates and auction numbers.

Recording a clearance rate of 85.5% at the weekend, Sydney was up on the previous weekend’s 83.3% result – ahead of the 67% recorded over the corresponding weekend last year.

Sydney saw a lift in auction number for the second consecutive week with 495 homes offered for sale compared to the previous weekend’s 488. The weekend auction listings were the highest reported opening of the spring selling season since 2018 – despite the lockdown measures.

Sydney recorded a median price of $1,635,500 for houses sold at auction at the weekend which was again lower than the $1,757,000 reported over the previous Saturday but 20.8% higher than the $1,354,000 recorded over the same weekend last year.

Melbourne’s auction market felt the strain of lockdown, recording a clearance rate of 72.6% – well above the previous weekend’s 48.2% but a reflection of significantly lower listing numbers.

The Victorian capital only recorded 624 listings, compared to the previous weekend’s 1427. The market saw a lower level of withdrawals – 32.5% of reported auctions were withdrawn compared to the previous weekend’s 62.2% – further boosting the clearance rate.

Melbourne recorded a median price of $918,000 for houses sold at auction at the weekend which was again lower than the $1,000,000 recorded over the previous weekend and 3.4% lower than the $950,000 recorded over the same weekend last year.

Data powered by Dr Andrew Wilson, My Housing Market.



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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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