Home auction markets rise over May despite election distractions

Home auction market activity strengthened over May with clearance rates, volumes and prices rising in most capital cities.

Clearance rates in the Sydney market increased over the month from the April result of 67.1 percent to 70.8 percent in May. Melbourne clearance rates also increased over the month to 72.5 percent compared to April’s 71.6 percent.

Brisbane and Adelaide clearance rates also increased over the month although Canberra recorded a fall from 62.1 percent to 60.5 percent. Although most markets reported monthly rises in clearance rates, results remain below those recorded over the generally strong conditions of May last year.

The median auction price surged in Sydney, Melbourne and Brisbane over May – increasing by 4.1 percent, 8.6 percent and 10.6 percent respectively. Median auction prices however fell in Adelaide and Canberra.

Auction volumes also were on the rise over the month with weekend averages increasing in all capital city markets. Overall auction volumes this year however are down sharply in Sydney, are similar in Melbourne and Brisbane and higher in Adelaide and Canberra compared to the same period last year.

The general increase in auction volumes and prices over May reflects to some degree the influence of the numerous holiday distractions that sidelined markets over April. Higher clearance rates however indicate increased levels of buyer activity with lower interest rates and signs of an increase in investor activity in some markets fuelling growth.

Auction markets head into the typically quieter winter months in generally solid shape with the Sydney and Melbourne markets continuing to lead the pack with resilient and robust buyer and seller activity.

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