Weekend National Clearance Rate Sees Divergent Results
Strong performances in Sydney, Melbourne and Adelaide were dampened by the other states.
2 min
Auction markets at the weekend presented split results, with most recording the highest clearance rates for recent months while other capitals fell dramatically.
As a whole, the national clearance rate at the weekend was 58.3% — lower than the 60.9% reported last weekend and well below the 78.2% recorded over the same weekend last year.
National auction numbers were higher at the weekend with 1335 listings compared to last weekend’s 1202 — but again significantly lower than the same weekend last year’s 1872 auctions.
Clearance rate declines in Brisbane (40.6%) and Canberra (33.8%) affected the national clearance rate, while the major capitals of Sydney and Melbourne performed above expectation.
The Sydney market rose sharply at the weekend, recording its highest clearance rate since May of 65.7%, which was well above the 57.8% recorded over the previous weekend=, yet lower than the 83.0% recorded over the same weekend last year.
Auction numbers were also up, with the NSW capital recording 553 listings compared to 421 and now higher than the 472 auctioned over the same weekend last year — impacted then by Covid-19 shutdowns.
Sydney recorded a median price of $1,715,000 for houses sold at auction at the weekend which was sharply higher than the $1,470,000 recorded last weekend and 5.5% higher than the same weekend last year’s $1,626,250.
Melbourne’s weekend auction market continued to rise following last weekend’s bounce in buyer activity.
The Victorian capital reported a clearance rate of 65.7% on Saturday – was again clearly above the previous weekend’s 62.1% and now similar to the 66.0% recorded over the same weekend last year.
A total of 558 homes were listed at the weekend which was similar to the 550 reported the over the previous weekend but well below the 1138 of last year.
Melbourne recorded a median price of $990,000 for houses sold at auction at the weekend which was well ahead of the $968,500 reported last weekend but 8.8% lower than the $1,085,000 recorded over the same weekend last year.
Data powered by Dr Andrew Wilson; myhousingmarket.com
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Capital cities lead the way as median home values see clear upswing
2 min
Home values continue their upwards trajectory, recording the strongest monthly growth in 18 months, CoreLogic data shows.
The property data provider reports that their Home Value Index has noted a third consecutive rise in values in May, accelerating 1.2 percent over the past month. This is on the back of a 0.6 percent increase in March and 0.5 percent rise in April.
Sydney recorded the strongest results, up 1.8 percent, the highest recorded in the city since September 2021. The fall in Sydney’s home values bottomed in January but have since accelerated sharply by 4.8 percent, adding $48,390 to the median dwelling value.
Melbourne recorded more modest gains, with home values increasing by 0.9 percent, bringing the total rise this quarter to 1.6 percent. It was the smaller capitals of Brisbane (up 1.4 percent) and Perth (up 1.3 percent) that reported stronger gains.
CoreLogic research director Tim Lawless said the lack of housing stock was an obvious influence on the growing values.
“Advertised listings trended lower through May with roughly 1,800 fewer capital city homes advertised for sale relative to the end of April. Inventory levels are -15.3 percent lower than they were at the same time last year and -24.4 percent below the previous five-year average for this time of year,” he said.
“With such a short supply of available housing stock, buyers are becoming more competitive and there’s an element of FOMO creeping into the market.
“Amid increased competition, auction clearance rates have trended higher, holding at 70 percent or above over the past three weeks. For private treaty sales, homes are selling faster and with less vendor discounting.”
Vendor discounting has been a feature in some parts of the country, particularly prestige regional areas that saw rapid price rises during the pandemic – and subsequent falls as people returned to the workplace in major centres.
The CoreLogic Home Value Index reports while prices appear to have found the floor in regional areas, the pace of recovery has been slower.
“Although regional home values are trending higher, the rate of gain hasn’t kept pace with the capitals. Over the past three months, growth in the combined capitals index was more than triple the pace of growth seen across the combined regionals at 2.8% and 0.8% respectively,” Mr Lawless said.
“Although advertised housing supply remains tight across regional Australia, demand from net overseas migration is less substantial. ABS data points to around 15% of Australia’s net overseas migration being centred in the regions each year. Additionally, a slowdown in internal migration rates across the regions has helped to ease the demand side pressures on housing.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
