Auction markets keep rising over June despite election distractions

Home auction market activity in most capitals strengthened over June with higher clearance rates, volumes and prices.

Auction clearance rates in the Sydney market increased over the month to 71.7 percent compared to the 69.2 percent reported over May. Melbourne auction clearance rates however bucked the overall trend falling from 70.3 percent to 68.8 percent over the month.

Both Adelaide and Canberra clearance rates increased sharply over the month rising to 67.6 percent and 64.8 percent respectively. Brisbane auction clearance rates also increased marginally over June up from 45.8 percent to 46.6 percent.

Median auction prices fell over June in Sydney, Melbourne and Brisbane with declines influenced by seasonal impacts from a lower proportion of higher –priced homes offered for sale over the month.

Seasonal effects however were offset by strengthening local market conditions in both Adelaide and Canberra where median auction prices increased over June compared to May.

Average weekend auction volumes were down over June compared to May reflecting the impact of the Queen’s Birthday holiday weekend.

The total number of auctions listed over the first 6 months of 2016 was sharply higher in Brisbane, Adelaide and Canberra compared to the number listed over the same period last year. Auction numbers however were slightly down in Melbourne over the same comparisons with Sydney reporting a sharp decline of 15.7 percent in auction listings over the first 6 months of this year compared to the same period last year.

Auction markets have generally performed robustly over the first half of 2016 and maintained solid momentum over June despite the distractions of the federal election campaign.

Capital city auction activity will decline sharply over July as the usual mid-winter hiatus and holiday distractions quell the markets. The prospect of lower interest rates and a continued competitive lending environment however will fuel the usual early spring revival in August.

Dr Andrew Wilson is Domain Group Chief Economist Twitter@DocAndrewWilson – My Property, Radio 2UE Fridays 2-3pm, Saturdays 1230-1pm