Auction markets record more strong results over August

Home auction market activity in most capitals strengthened again over August with higher clearance rates reflecting rising competition among buyers for available property.

The Sydney and Melbourne markets were the clear leaders in escalating auction activity over the month with listings however remaining well below the levels of last year at the same time.

Lower interest rates and a sharp revival in investor activity will continue to provide a solid platform for a continuation of robust conditions in most auction markets over spring.

Sydney

Sydney auction clearance rates increased sharply over August rising to 75.6 percent compared to the 71.6 percent reported over July. The August result was the highest recorded by the local market since July last year and reflects a market that has clearly regained its boom-time energy.

Although clear rates soared over August, auction listings remain well below the levels recorded over the same period last year. August reported average weekend listings of 465 which although higher than July’s 341 average was well below the 735 recorded over August last year.

So far this year 5378 fewer auctions have been listed in Sydney – a fall of 24.1 percent compared to the same period last year.

Sydney’s median auction price increased from $1,150,000 over July to $1,210,000 over August and was also higher than the $1,080,500 reported over August last year.

Melbourne

The Melbourne auction market has similarly reported a sharp increase in auction activity over August with clearance rates rising from 71.8 percent over July to 75.5 percent – the highest monthly result recorded since August 2015.

Average weekend auction volumes increased over the month from 457 to 643 but remained well below the 826 averaged over August last year.

Melbourne’s auction numbers this year so far have fallen by 8.1 percent or are 1875 fewer than the 23,115 listed over the same period last year.

Melbourne’s median auction price increased from $725,000 over July to $825,000 over August but was lower than the $830,000 reported over August last year.

Brisbane

The Brisbane market also reported a lift in auction clearance rates over August rising over the month from 45.3 percent to 47.6 percent. The August result however remained well below the 56.9 percent recorded over August last year.

Auction volumes in Brisbane were up over the month with average weekend listings rising from 77 to 83 but remaining well below the 107 averaged over August the year before.

Auction numbers in Brisbane have fallen by 1.1 percent to 4,131 over the first eight months of this year compared to the same period last year.

Brisbane’s median auction price however increased from $690,000 over July to $752,000 over August and was also higher than the $701,000 recorded over August last year.

Adelaide

The Adelaide auction market also strengthened over August with clearance rates rising from 58.3 percent to 61.5 percent – but below the 64.6 percent recorded over August last year

In contrast to the other capitals, Adelaide auction numbers fell over August down from the weekend average of 52 recorded over July to 50,and also down on the 56 average over August last year.

Adelaide auction volumes so far this year have however increased by 3.1 percent to 2,503 compared to the same period last year.

Adelaide’s median auction price fell from $586,250 over July to $552,500 over August but remained higher than the $540,000 recorded over August last year.

Canberra

In contrast to the other capitals, auction clearance rates in the Canberra market fell slightly over August from 68.7 percent to 67.8 percent and were also down on the 70.8 percent recorded over August last year.

Auction volumes however increased in Canberra over the month, rising from a weekend average of 30 to 44 and were also ahead of the 40 averaged over August last year – the only capital to record an increase over the year.

Overall auction volumes in Canberra are 3.3 percent higher this year so far compared to the same period last year – an increase of 56 auctions.

Canberra’s median auction price also increased over August rising from $636,000 over July to $683,250 over August but was slightly lower than the $685,000 recorded over August last year.

Dr Andrew Wilson is Domain Group Chief Economist Twitter@DocAndrewWilson and at LinkedIn