Sydney Records Another Year-Low Clearance Rate
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Sydney Records Another Year-Low Clearance Rate

The auction market is trading well below last year’s figures.

By Terry Christodoulou
Mon, Mar 21, 2022 9:52amGrey Clock 2 min

The national home auction market enjoyed a weekend free from weather events and holiday distractions, posting a lift in clearance rates and auction numbers.

Across the country, the market saw 2475 listings, up on the previous weekend’s 1574 and well ahead of the 2190 reported over the same Saturday last year.

Further, the national clearance rate lifted to 75.1% at the weekend — higher than the previous weekend’s 73.8% but significantly down on the 87.4% recorded over the same weekend last year.

Out of all the capital cities, Adelaide was the only market to break 80%, posting an impressive 89.8% clearance rate from 111 auctions.

Sydney’s market was lower again with an elevated number of withdrawals posted.

The NSW capital recorded a year-low clearance rate of 69.6% at the weekend – similar to the 69.8% reported last weekend but well below the record high 92.4% reported over the same weekend last year.

Sydney reported 866 homes listed for auction. However, this figure is down on the previous weekend’s 884, yet higher than the 856 auction over the same weekend last year.

Sydney recorded a median price of $1,757,000 for houses sold at auction at the weekend — higher than the $1,605,500 reported over the previous weekend and 9.1% higher than the $1,610,500 recorded over the same weekend last year.

Melbourne’s market saw a predictable surge in auction listings following the holiday weekend, up to 1390 homes listed for auction from the previous weekend’s 423.

The Victorian capital recorded a steady clearance rate of 69.9% on Saturday which was slightly lower than last weekend’s 70.3% and remained well below the 82.1% recorded over the corresponding weekend last year.

Melbourne recorded a median price of $1,115,000 for houses sold at auction at the weekend which was significantly higher than last weekend’s $1,008,000 and 13.8% higher than the $980,000 recorded over the same weekend last year.

Data powered by Dr Andrew Wilson, My Housing Market.

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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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