Canberra market fading as budget looms

The Canberra home auction market weakened again on Saturday recording its lowest clearance rate of the year and the third consecutive weekend of declining rates.

Canberra recorded an auction clearance rate of 54.6 percent on Saturday which was lower than the 63.6 per cent reported over the previous weekend but higher than the 44.8 per cent recorded over the same weekend last year.

Just 36 homes were scheduled to go under the hammer in Canberra at the weekend which was well down on the 58 listed the previous weekend but higher than the 33 listed over the same weekend last year. Auction numbers will bounce back next weekend with 71 homes due to go under the hammer.

Woden Valley reported the highest regional clearance rate at the weekend with 100  per cent from the two reported auctions followed by Belconnen 87.5 per cent, Gungahlin 70.0 per cent, Tuggeranong 60.0 per cent and  Canberra Central and Weston Creek where the reported auctions failed to sell.

Notable sales reported at the weekend included a  7  bedroom home at 23 Jagara  Street Aranda sold by LJ Hooker Dickson for  $886,000 a  3  bedroom home at 19 McCulloch  Street Curtin sold for  $880,000 by Peter Blackshaw Real Estate,  a  4  bedroom home at 25 Warrumbul  Street Ngunnawal sold by LJ Hooker Gungahlin for  $840,000, a  3  bedroom home at 14 Barrow  Place Lyons sold for  $835,000 by Peter Blackshaw Real Estate and another  3  bedroom home at 5 Tangari  Street Ngunnawal sold for  $730,000 by LJ Hooker Gungahlin.

The most expensive property reported sold at auction was a  5  bedroom home at 76 Diamond  Street Amaroo sold for  $1,400,000 by Maria Selleck Properties. The most affordable property reported sold at the weekend was a  3  bedroom unit at 13 Corringle  Close Amaroo sold for  $430,000 by LJ Hooker Kippax.

For a list of Canberra auction results click here Canberra auction results May 6

Canberra recorded a median auction price of $667,500 on Saturday which was significantly lower than the $727,000 reported for the previous weekend and 6.0 per cent lower than the $710,000 recorded over the same weekend last year. A total of $11.4m was reported sold at auction in Canberra at the weekend.

Canberra recorded a clearance rate of 67.0 per cent over April which was slightly lower than the 68.2 per cent reported over March but well clear of the 62.3 percent recorded over the same month last year.

327 homes were listed for auction in Canberra over April which was predictably lower than the 350 listed over March but higher than the 302 listed over April last year.   1005 auctions have been listed over the first four months of this year which is a sharp increase of 16.5 per cent or 142 more than the 863 listed over the same period last year.

Although Canberra auction clearance rates and volumes were down over April, the median auction prices increased over the month to $710,000 compared the $705,000 recorded over March. The median auction price has now increased by 2.9 percent over the past year.

Over recent months governments and policymakers have directed significant attention to solving perceived housing market imbalances. The clear risk however is that ad-hoc, one-size- fits- all policies may create or exacerbate stress in local markets and market segments.

Monetary policy continues its weighty focus on supposed generalised housing market stress with the Reserve Bank leaving rates on hold again this month in hopeful anticipation of an economic revival sooner rather than later.

This week it will be the turn of fiscal policy to address the much promoted woes of the housing market through the Federal Budget.

Dr Andrew Wilson is Domain Group Chief Economist Twitter@DocAndrewWilson join on LinkedIn and Facebook at MyHousingMarket.