Housing market ends autumn on the rise as lockdowns are eased across Australia
12 May 2020 | Dr Andrew Wilson, My Housing Market (Image: Crown Group)
Sellers are moving back into the national housing market driven by rising consumer confidence as the easing of coronavirus restrictions accelerates.
The latest My Housing Market National Newly Listed Homes Index has trended upwards over the past week following a period of consolidation after the Easter holiday break. The Index provides a real-time assessment of home seller sentiment compared to other backward-looking housing market measures.
Although the Index remains 25% below its pre-coronavirus shutdown base of March 1, it is now well above the trough point nearly 50% lower recorded on the April 16.
The Index is also now just 5.8% below the same period last year when markets were impacted by the conclusion of the Federal Election campaign and generally subdued buyer and seller confidence at that time.
Current housing market momentum is set to build over coming weeks particularly given the prospect of government stimulus packages directed at activating home buyers.
The winter market will commence in more positive shape compared to the uncertainty that characterised most of autumn – although the nature of the economic recovery still looms as a serious challenge.
Dr Andrew Wilson is Chief Economist of My Housing Market
Auction clearance slightly higher
CoreLogic data reports that last week, 867 capital city homes were scheduled for auction, with preliminary results returning a 65.9 per cent clearance rate. The previous week saw 612 homes scheduled for auction and a final clearance rate of 62.7 per cent.
One year ago, there were 1,661 homes taken to auction and a 58.0 per cent clearance rate. Although the number of auctions held remains low, since restrictive policies around open homes and onsite auctions were lifted, the trend has been towards more auctions held and a substantial reduction in the proportion of auctions withdrawn prior to the event. The number of auctions held last week was the highest since the week ending April 19th.