Decline Sydney And Melbourne Clearance Rates
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Decline Sydney And Melbourne Clearance Rates

Numbers take a tumble despite maintained market buoyancy.

By Terry Christodoulou
Mon, Apr 26, 2021 10:14amGrey Clock < 1 min

Auction clearance rates in the dominant markets of Sydney and Melbourne dipped at the weekend.

The number of listings also fell significantly in most capitals compared to the previous weekend, with the exception of Adelaide where listings surged to the highest number (111) of the year.

The Sydney home auction market produced another relatively strong result of 85.1% sell through. However, the clearance rate was down on the previous weekend (86.2%), and well below March’s record results.

Sydney auction numbers were also lower at the weekend – possibly impacted by the ANZAC Day holiday – with 672 homes listed compared to 785 the previous weekend. Saturday saw the lowest offering since early March, with the exception of Easter.

Sydney recorded a median price of $1,449,000 for houses sold at auction at the weekend, 7.1% lower than the $1,560,000 reported the previous weekend.

Elsewhere, Melbourne’s auction clearance rate fell for the third consecutive weekend to 79.0%, down on last weekend’s 79.7% and the lowest recorded for the year.

A mere 835 homes were reported listed for auction on Saturday in Melbourne, well below the 1062 auctioned the previous weekend, and the lowest non-holiday offering since February.

Melbourne recorded a median price of $975,000 for houses sold at auction on the weekend, 2.5% lower than the $999,900 recorded a week earlier.


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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. 

Commercial Market

Commercial property sentiment has improved for a consecutive quarter.

An influx of people could calm future volatility.

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