Auction markets heat up over spring

Home auction market spring activity continues to build with most capitals recording strengthening conditions over October

Sydney, Melbourne, Adelaide and Canberra each recorded strong mid-spring clearance rates with most results up on the levels reported over the previous month. With the exception of Brisbane, results were also significantly higher than those reported over the same month last year.

Interest rate cuts this year have fuelled increased buyer activity with investors returning as a rising driver of most housing markets.

Although spring clearance rates continue to rise, auction numbers in Melbourne and Sydney are well below the levels recorded over the same period a year ago.

Strong buyer momentum and fewer property choices will continue to fuel heady auction market activity through the remainder of spring despite the Reserve Bank deciding to again leave interest rates on hold over November.

Sydney

Sydney auction clearance rates again increased sharply over October rising to 77.4 percent compared to the 75.4 percent reported over the previous month. Rates remain well ahead of the results recorded over the same month last year

Listings however remain well below the levels recorded over the same period last year. October reported average weekend listings of 594 which although higher than Augusts’ 589 average was well below the 810 recorded over October last year.

Over the first ten months of this year, 8206 fewer auctions have been listed in Sydney – a fall of 25.8 percent compared to the same period last year.

Sydney’s median auction price eased from $1,280,000 over September to $1,260,000 over October and was significantly higher than the $1,155,000 reported over October last year.

Melbourne

The Melbourne auction market reported another increase in auction activity over October with clearance rates rising from 75.8 percent over September to 76.3 percent. This was also well ahead of the 69.0 percent recorded over October 2015

Average weekend auction volumes fell over the month from 800 to 706 and also remained well below the 862 averaged over October last year.

Melbourne’s auction numbers this year so far have fallen by 10.9 percent or are 3478 fewer than the 31,930 listed over the same period last year.

Melbourne’s median auction price increased from $815,000 over September to $858,000 over October and was also higher than the $800,000 reported over October last year.

Brisbane

The Brisbane market reported another marginal lift in auction clearance rates over October rising over the month from 46.5 percent to 47.7 percent. The October result however was lower than the 50.1 percent recorded over the same month last year.

Auction volumes in Brisbane were up over the month with average weekend listings rising from 105 to 108 but again remained well below the 130 averaged over October the year before.

Auction numbers in Brisbane have fallen by 4.5 percent to 5,595 over the first ten months of this year or 261 fewer compared to the same period last year.

Brisbane’s median auction price fell from $725,000 over September to $713,400 over October and was also lower than the $724,375 recorded over October last year.

Adelaide

The Adelaide auction market weakened over October falling from 73.0 percent to 71.0 percent – but nonetheless still a solid result for sellers and well ahead of the 60.4 percent recorded over October last year.

Adelaide auction numbers were steady over October at a weekend average of 63 and similar to the 64 average over October last year.

In contrast to other capitals, Adelaide auction volumes so far this year have however increased by 2.2 percent to 3,279 compared to the same period last year.

Adelaide’s median auction price increased from $601,500 over September to $623,000 over October and was higher than the $600,050 recorded over October last year.

Canberra

Similar to the other capitals, auction clearance rates in the Canberra market increased over October rising sharply from 73.6 percent to 74.1 percent and well ahead of the 65.5 percent recorded over October last year.

Auction volumes fell in Canberra over the month, down from a weekend average of 56 to 47 and also below the 50 averaged over October last year.

Overall auction volumes in Canberra are steady this year so far compared to the same period last year at 2321.

Canberra’s median auction price increased sharply over October up from $670,000 over September to $710,000 and also higher than the $690,000 recorded over October last year.

Dr Andrew Wilson is Domain Group Chief Economist Twitter@DocAndrewWilson and at LinkedIn and listen 2UE Lifestyle Radio Fridays 11am and Mondays 5pm, Radio 4BC Saturdays 830am