Australian residential auction market still strong

APAC News sold sign on residential property in Sydney

While Melbourne numbers are down thanks the Labour Day long weekend, the overall market trend shows a solid rise

9 March 2020 | Dr Andrew Wilson, My Housing Market

The Sydney home auction market greeted autumn with yet another boom-time clearance rate despite widespread scaremongering over the coronavirus.

Sydney reported a clearance rate on Saturday of 80.5% which was slightly lower than the previous weekends extraordinary Super Saturday result of 85.8% and as usual well ahead of the same weekend last year’s 61.5%.

Listing numbers were predictably lower this weekend with 675 auctions reported compared to the previous weekends two-year high of 911 but well ahead of the same weekend last year’s 530.

Sydney median prices up by 5.4%

Sydney’s median weekend auction price of $1,230,000 was lower than the previous weekends $1,270,000 but 5.4% higher than the same weekend last year’s $1,167,500.

Canterbury Bankstown was Sydney’s top performing region on Saturday with a clearance rate of 89.3% followed closely by the South at 88.5%.

Predictable action by the RBA this week to cut interest rates – and passed on in full by the banks, will act to reinforce current strong housing market activity.

And given the latest underwhelming GDP data and forecast negative economic issues associated with the coronavirus, another cut clearly remains on the cards – sooner rather than later.

No Stopping Strong Melbourne Auction Market

Despite public holiday distractions Melbourne’s auction market remains strong, though it moved into pause mode this weekend with numbers well down on last weekend’s Super Saturday flood of listings.

Holiday buyer activity however remained intense with clearance rates continuing at recent robust levels . Melbourne’s 71.9% clearance rate was lower than the previous weekends 80.4% but well ahead of the same weekend last year’s 51.0%.

Weekend listings were predictably well down with 345 reported compared to last weekend’s 1384 but higher than the same holiday weekend last year’s 145 auctions.

Melbourne recorded a weekend median auction price of $793,000 which was lower than the previous weekend’s $897,500 but 14.1% higher than the same weekend last year’s $695,000.

Melbourne’s top performing region again was the North East with a clearance rate of 88.9% followed by the Inner South at 81.5%.

Auction clearance rate across the combined Australian capital cities rose to 74.8% this week, up from the final 73.9% last week. Over the same week last year, the clearance rate was recorded at a much lower 47.8%.

Dr Andrew Wilson is Chief Economist of My Housing Market