Residential property clearance rates booming compared to 12 months ago

APAC News Residential Property Auction Clearance rates return to high levels

614 SYDNEY PROPERTIES SOLD AT AUCTION ON THE THIRD SATURDAY OF OCTOBER AT A MEDIAN PRICE OF NEARLY $1.2 MILLION

Sydney residential auction results heating up, are sellers now returning?

Dr. Andrew Wilson

The red-hot Sydney weekend home auction market recorded another boom-time clearance rate on Saturday with emerging signs that sellers are now returning to the market. Sydney reported an 80.7% clearance rate on Saturday (October 19) which was similar to the previous weekend’s 80.8% and light-years ahead of the 48.5% recorded over the same weekend last year.

Saturday’s result was Sydney’s first back-to back 80% plus clearance rate since the autumn of 2017. Auction numbers consolidated on Saturday despite the previous weekend’s typical post-holiday listings surge.

614 homes were reported auctioned which was similar to the previous weekend’s 626 and higher than 567 listed over the same weekend last year. Sydney’s median weekend auction price of $1,195,000 was higher than the previous weekend’s $1,153,500 but lower than the same weekend last year’s $1,265,000.

The Central Coast was again top regional performer at the weekend with a clearance rate of 88.9% followed closely by the Inner West at 88%. Sydney is now galloping ahead of the other capitals as clearly the strongest home auction market with more local sellers likely to advantage of a booming market – with higher prices.

The Melbourne weekend home auction market reported more positive results for sellers generally on Saturday although clearance rates eased from recently strong results Melbourne recorded a clearance rate of 73.7% which was lower than the previous weekends 78.1% but remained well ahead of the 48.6% reported over the same weekend last year.

Saturday’s result however was the lowest recorded by the local market for nearly three months. Auction numbers were also lower at the weekend with 828 homes reported listed compared to the previous weekend’s 850 and the 823 auctioned over the same weekend last year.

Melbourne recorded a median auction price of $845,000 at the weekend which was higher than the previous weekend’s $838,000 but lower than the same weekend last year’s $885,000. The Outer East continued as top regional performer at the weekend with another boom-time clearance rate at 87.2%, which was well ahead of the next highest the West at 75.0% and the Inner South at 74.8%.

Despite an easing in clearance rates this weekend, the Melbourne mid-spring auction clearly remains positive for sellers although sterner challenges will present next weekend with the usual pre-Melbourne Cup surge in listings.

Dr. Andrew Wilson is Chief Economist of My Housing Market

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