Auction markets weaken over April

Home auction markets weakened over April with most capitals reporting falling clearance rates compared to the previous month.

Melbourne was the exception with clearance rates increasing marginally from 71.8 percent to 72.5 percent to remain the best performing capital city market. Clearance rates in all capitals with the exception of Adelaide remain below the levels reported over April last year.

Median auction prices were down over the month in Sydney, Melbourne and Brisbane reflecting to some extent the impact of holidays with fewer higher-priced homes in the market. Adelaide and Canberra however both recorded rises in median home auction prices

Auction listings were also generally down over the month again reflecting the impact of seasonal effects.

The number of auctions listed this year so far however is higher than the result over the same period last year in all capitals except Sydney where auction volumes have fallen sharply by 6.5 percent.

With the autumn holiday season now concluded capital city auction market activity will reflect a more consistent profile in regard to listing volumes and price ranges.

Auction clearance rates remain moderate overall with most capital city markets continuing as positive for sellers. Melbourne, Sydney and Adelaide remain relatively stable, however signs are emerging of weakening trends in Canberra and Brisbane.

Auction prices growth is set to generally remain relatively flat through the late autumn and early winter, with the previously booming markets of Melbourne and Sydney now clearly a thing of the past.

Moderating economic activity, tighter lending conditions from banks, flat interest rates and incomes growth and the distractions of a lengthy federal election campaign with the possibility of significant changes to residential property taxes will all act to constrain housing market outcomes generally.

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