Strong auction growth in Canberra housing market

February was a strong month for Canberra auctions providing further indications of a local housing market on the rise.

There were 259 homes listed for auction over the month, which was well ahead of December’s total of 208. A more robust indication of market growth over the past year, however, is a comparison with auction activity over February last year when just 159 auctions were listed in Canberra. Last month’s auction activity is 63 per cent higher than a year ago reflecting clearly increased confidence by sellers in the market.

Not only have auction volumes increased sharply but clearance rates have also risen strongly as buyer activity intensifies. Despite a record February for auctions, the local market recorded the highest monthly clearance rate for any month since February 2011 – four years ago.

Not surprisingly the strong February clearance rate of 69.1 per cent was well ahead of the 56.2 per cent recorded over February last year and also well ahead of the 59.6 per cent recorded over December last year.

Auction numbers are set to continue to rise this month in Canberra with 62 scheduled this Saturday. Rising auction volumes and higher clearance rates are reliable forward indicators of overall housing market activity. 

The prospect of lower interest rates together with restored confidence will enhance a Canberra housing market revival, particularly in the mid to higher price brackets typically favoured by auctions – with prices growth set to follow.

Dr Andrew Wilson is Domain Group Senior Economist
Twitter@DocAndrewWilson
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