No signs of a crash

Latest data suggests fears of a COVID-19 residential property market crash are overblown

15 May 2020 | Dr Andrew Wilson, My Housing Market (Image:  Alberto Castillo)

The recent surge in new listings has continued to ease over the past week reflecting the usual ongoing seasonal impact of the Queen’s Birthday holiday long weekend.

The latest National Newly Listed Homes Index exclusive to My Housing Market however reveals the holiday easing of the past week has settled over recent days.

Home seller confidence has risen since coronavirus restrictions have been gradually reduced over the past month. Housing markets are clearly reactivating following the shutdown, with new listing numbers now tracking at similar levels to the same time last year.

Recent predictions of sharp falls in house prices this year may – yet again – prove to be well wide of the mark.

Auction clearance up as volumes increase

CoreLogic Data reports, a combined capital city preliminary auction clearance rate improve with 63.3% of homes selling at auction over the past week. The higher clearance rate was against a higher volume of auctions, with 1,164 properties scheduled for auction; the busiest week for auctions since the week ending 19 April.

While volumes remain lower than one year ago, the gap was less significant this week, with 1,505 auctions held one year ago when 61.8% cleared.

Both Melbourne and Sydney returned preliminary clearance rates above 60% this week, with Sydney the best performing of the two largest cities.

There were 474 Melbourne homes taken to auction with a 61% success rate, which was more than double the volume of auctions held last week (195), when a final clearance rate of 60.1% was recorded.

Sydney’s preliminary figures saw 67.3% of homes successful at auction last week with 532 auctions held across the city, higher than the 398 last week when 56.8% sold.