Post-Budget auction markets still hot but clearly easing as listings surge as sellers try to cash in on booming market
17 May 2021 | Dr Andrew Wilson, My Housing Market
Although home auction markets reported more boomtime results at the weekend, clearance rates are now clearly trending lower impacted by a continuing surge of sellers keen to take advantage of strong buyer competition – while it lasts.
2401 homes were reported as listed for auction on Saturday which, although lower than last weekend’s all-time May record 2563, nonetheless again provided plenty of choices for buyers.
Reflecting increased supply, the national average weekend clearance rate was down again on Saturday, falling from 83.1% to 80.8% – the lowest result since the season opener 77.7% recorded on the January 30th.
Clearance rates have now fallen for 4 consecutive weekends and are now well below the peak result of 88.5% recorded on March 5th – although still clearly in favour of sellers.
Another big weekend for Sydney auctions but clearance rate falls again
The Sydney weekend auction market hosted another mountain of May auctions on Saturday and although clearance rates clearly remained high, they nonetheless continue to track lower.
Surging auction numbers since the resumption of full activity following the lengthy April holiday distractions have impacted clearance rates, with significantly more choices for buyers – although clearly remaining a sellers’ market
Sydney reported a clearance rate of 82.9% which, although again just below the 83.5% recorded the previous weekend, was the fourth weekend in a row of falling rates.
990 Sydney auctions were reported on Saturday which was just below the previous weekends May record 1014 but well ahead of the covid-impacted 149 auctioned over the same weekend last year.
Sydney recorded a median price of $1,641,000 for houses sold at auction at the weekend which was just below the $1,650,000 reported over the previous Saturday but 16.4% higher than the $1,410,000 recorded over the same weekend last year.
The Northern Beaches was yet again Sydney’s top performing region at the weekend with a clearance rate of 89.1% followed by the City and East 87.9% and the Inner West 87.6%. The South West however was lower again at the weekend down to 72.2% with the West just above at 74.2%.
The clearance rate for houses was 82.8%, with units higher at 83.4%.
Surging auctions push Melbourne clearance rate down to year-low
Melbourne’s weekend auction market recorded its lowest clearance rate for the year so far, with waves of listings providing more choices for buyers and placing downward pressure on results.
Melbourne reported a clearance rate of 78.6% which was well below the 80.7% recorded the previous weekend but well ahead of the covid-impacted 54.4% recorded over the same weekend last year.
1159 Melbourne homes were reported listed for auction on Saturday which was just below the 1248 May record auctioned over the previous weekend but well ahead of the 82 auctioned over the same weekend last year.
Melbourne recorded a median price of $1,093,000 for houses sold at auction on the weekend which was 4.1% higher than the $1,050,000 recorded over the previous weekend and 8.9% higher than the $1,002,944 recorded over the same weekend last year.
Melbourne’s North reported the top regional clearance rate on Saturday with 83.7% followed by the Outer East 82.8%.
The clearance rate for houses was 80.6%, with units well down at 71.6%.
Dr Andrew Wilson is Chief Economist of My Housing Market