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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The crafty workarounds would-be buyers use to get into the market

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.

 

MOST POPULAR
11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

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