Weekend National Clearance Rate Sees Divergent Results
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Weekend National Clearance Rate Sees Divergent Results

Strong performances in Sydney, Melbourne and Adelaide were dampened by the other states.

By Kanebridge News
Mon, Aug 15, 2022 9:07amGrey Clock 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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RMIT expert says a conflation of factors is making the property market hard than ever to predict

By Robyn Willis
Thu, Oct 6, 2022 9:52am < 1 min

A leading property academic has described navigating the current Australian housing market ‘like steering a ship through a thick fog while trying to avoid obstacles’.

Lecturer in RMIT’s School of Property Construction and Project Management Dr Woon-Weng Wong said the combination of consecutive interest rate rises aimed at combating high inflation, higher property prices during the pandemic and cost of living pressures such as the end of the fuel excise that occurred this week made it increasingly difficult for those looking to enter or upgrade to find the right path.

“Property prices grew by approximately 25 percent over the pandemic so it’s unsurprising that much of that growth ultimately proved unsustainable and the market is now correcting itself,” Dr Wong says. “Despite the recent softening, the market is still significantly above its long-term trend and there are substantial headwinds in the coming months. Headline inflation is still red hot, and the central bank won’t back down until it reins in these spiralling prices.” 

This should be enough to give anyone considering entering the market pause, he says.

“While falling house prices may seem like an ideal situation for those looking to buy, once the high interest rates, taxes and other expenses are considered, the true costs of owning the property are much higher,” Dr Wong says. 

“People also must consider time lags in the rate hikes, which many are yet to feel to brunt of. It can take anywhere from 6 to 24 months before an initial change in interest rates eventually flows on to the rest of the economy, so current mortgage holders and prospective home buyers need to take this into account.” 

 

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