Auction market trend pushes ahead despite more holiday distractions
26 April 2021 | Dr Andrew Wilson, My Housing Market (Image Supplied: 21-23 Prince St, Cronulla)
Although home auction clearance rates were again generally lower in most capitals at the weekend, results remained well and truly positive for sellers with boomtime market conditions continuing.
Official – or unofficial – ANZAC Day long weekend holidays again distracted auction markets on Saturday following the lengthy Easter and school holiday breaks of the last month Auction numbers were significantly lower in most capitals compared to the previous weekend with the exception of Adelaide where listings surged to the highest number for the year so far.
Melbourne reported the sharpest decline in auction numbers to the lowest nonholiday (official) Saturday offering since February. Clearance rates were also lower over the weekend – albeit marginally lower in Sydney and Melbourne – with the exception of Canberra that reported a stunning 97.3% result Auction markets will move back into full swing next weekend and reveal whether recent modest declines in holiday period activity reflect an underlying easing of the boom.
Another Top Result for Sydney Auction Market – But Lower Again
The Sydney home auction market produced another boom-time result for sellers generally at the weekend although the clearance rate was marginally lower than the previous weekend and well below the record results consistently recorded over March.
Sydney reported a clearance rate of 85.1% which was just below the 86.2% recorded the previous weekend but, although clearly another strong result, was nonetheless the second lowest result since January.
Saturday auction numbers were lower at the weekend impacted by ANZAC Day holiday distractions with 672 homes listed compared to 785 the previous weekend and the lowest offering since early March with the exception of Easter.
Sydney recorded a median price of $1,449,000 for houses sold at auction at the weekend which was 7.1% lower than the $1,560,000 reported over the previous Saturday. All Sydney regions reported auction clearance rates above 80% at the weekend with the top performers the Northern Beaches and the North West each with super-strong clearance rates of 93.3%. The clearance rate for houses was 85.7%, with units higher this weekend at 83.0%.
The top reported Sydney auction sale at the weekend was a 4-bedroom unit at 201/21-23 Prince St Cronulla that sold for $5,800,000.
Melbourne Clearance Rate Lower Again – Buyers and Sellers Down
Melbourne’s weekend auction market clearance rate fell for the third consecutive weekend with ANZAC Day unofficial holiday distractions likely contributing to lower market activity. Nonetheless Melbourne continues to record its lowest clearance rates of the year so far with seller numbers also on the decline. Melbourne reported a weekend clearance rate of 79.0% which was lower than 79.7% recorded the previous weekend and the lowest recorded for the year so far.
Just 835 homes were reported listed for auction on Saturday which was well below the 1062 auctioned over the previous weekend and the lowest non-holiday offering since February.
Melbourne recorded a median price of $975,000 for houses sold at auction on the weekend which was 2.5% lower than the $999,900 recorded over the previous weekend.
Melbourne’s South East, Outer East and North regions were the top performing regions at the weekend all with clearance rates above 80% The Inner East was however well down on last weekend’s results with a clearance rate of 71.2% likely impacted by the holiday weekend.
The clearance rate for houses was 79.9%, with units 74.0%. Melbourne’s top reported auction sale at the weekend was a 5-bedroom house at Hawthorn East that sold for $4,131,000.
Dr Andrew Wilson is Chief Economist of My Housing Market