Canberra market tracks back over holiday weekend

The Canberra home auction market tracked back from its recent strong results with buyers and sellers predictably distracted by the Queen’s Birthday holiday weekend.

Canberra recorded an auction clearance rate of 63.0 percent on Saturday which was well down on the 72.6 reported over the previous weekend but was similar to the 63.6 per cent recorded over the same holiday weekend last year.

Although clearance rates were similar to last year’s result with 31 homes listed to go under the hammer compared to just 13 a year ago. Next weekend Canberra will host 53 auctions.

Belconnen and Weston Creek reported the highest regional clearance rates at the weekend each with a 100 per cent result. Next highest were Canberra Central, Gungahlin, Tuggeranong and Woden Valley each with 50 per cent clearance rates.

Notable sales reported at the weekend included a  4  bedroom home at 10 Bamford  Street Hughes sold for  $875,000 by McGrath Woden, another  4  bedroom home at 27 Feathertop  Street Palmerston sold by LJ Hooker Gungahlin for  $830,000, a  3  bedroom home at 14 Achernar  Close Giralang sold for  $760,000 by LJ Hooker Kippax, another  3  bedroom home at 5 Thomson  Street Chifley sold by IPG Woden Weston Creek for  $751,000 and a  3  bedroom home at 37 Stanley  Street Hackett sold by Harcourts Brindabella for  $730,000.

The most expensive property reported sold at auction was a  4  bedroom home at 10 Colton  Place Downer sold for  $950,000 by Luton Properties – Dickson. The most affordable property reported sold at the weekend was a  3  bedroom home at 2/45 Totterdell  Street Belconnen sold for  $355,000 by Leader Capital Real Estate.

For a list of Canberra auction results click here Canberra auction results June 10

Canberra recorded a median auction price of $680,000 on Saturday which was higher than the $787,500 reported over the previous weekend. A total of $9.9m was reported sold at auction in Canberra at the weekend.

Canberra home prices continue to rise strongly despite the fading impact from last year’s cuts to interest rates.

Median asking prices for Canberra private sale listings surged over the month of May increasing   by 4.1 per cent to a new record high $630,000. Canberra monthly house prices have now risen by a remarkable 14.5 per cent over the past year

Asking prices for Canberra units also increased over May although not as strongly as houses – up by 1.2 percent to $410,000. Canberra monthly unit prices have now risen by 4.7 per cent over the past year.

Low interest rates remain a key catalyst for higher Canberra home prices. The Reserve Bank has predictably decided to again leave interest rates on hold over June at the record low 1.5 per cent  – and where they have been since the cut in August last year.

Although rates are on hold the national economy continues to underperform and may need more stimulus from lower rates unless it improves. Latest GDP data was clearly underwhelming and just scraped over the line with insipid March quarter growth of just 0.3 per cent. State Final Demand for Canberra increased by 0.5 per cent over the March quarter.

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