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 The market saw a lower level of withdrawals – 32.5% of reported auctions were withdrawn compared to the previous weekend’s 62.2% – further boosting the clearance rate.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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Australian house values continue to fall – but the pace of decline has slowed

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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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