Confidence on the rise in the Sydney and Melbourne property markets
Weekend home auction markets continue produce strong results for most sellers with recent indications now consolidating of an underlying rise in listings
4 November 2019 | Dr Andrew Wilson, My Housing Market
Listings in Melbourne and Sydney are now approaching or exceeding the levels of a year ago at the same time with vendors keen to take advantage of current strong competition for property and sharply rising prices. Other capitals are also recording higher listing numbers with clearance rates remaining generally solid to strong.
The Sydney weekend auction market continues to strengthen with underlying listing numbers now clearly on the rise as more sellers take advantage of strong buyer competition for property.
The top six suburbs for residential auction listings this week were all in Sydney, Chatswood and Marsfield both in that list. Recent data shows that auction clearance rates in the Ryde local government area, which encompasses boom time hot spots, Marsfield, Epping and Macquarie Park are second only to Sydney’s eastern suburbs.
Although recently higher numbers of auctions may have marginally impacted overall clearance rates, results remain robust. Sydney’s weekend rate of 76.7% was similar to the previous weekends 76.5%, but remained well ahead of the same weekend last year’s 50.9%.
Auction numbers were higher again on Saturday with 695 reported listed compared to the previous weekend’s 641 and also higher than the same weekend last year’s 643 auctions. Sydney’s median weekend auction price of $1,285,000 was higher again than the previous weekend’s $1,222,000 and also higher than the same weekend last year’s $1,200,000.
The City and East was the top regional performer at the weekend with a clearance rate of 82.9% closely followed by the North West at 82.4% and the Lower North at 82.0% Sydney’s late spring auction market is as usual attracting more sellers which typically acts to place downward pressure on clearance rates. Rates however remain clearly in favour of sellers with prices predictably still on the rise.
Melbourne market pauses for the Cup; but listings higher
The Melbourne auction market paused for the Cup long weekend on Saturday but signs continue to grow that sellers are now finding their way back into the strong local market. Melbourne recorded a weekend clearance rate of 68.8% which was lower than the previous weekends 78.5% but higher than the 41.8% recorded over the same weekend last year.
Relatively low auction numbers affected Saturday’s results with few inner suburban homes going under the hammer. 174 auctions were reported listed which was predictably well below the previous weekends bumper 1400 offerings but higher than the 165 listed over the same holiday weekend last year.
Melbourne recorded a weekend median auction price of $790,250 which was lower than the previous weekend’s $879,000 but higher than the same weekend last year’s $717,000. Melbourne’s Outer East was top weekend regional performer with another strong clearance rate at 92.2% followed by the Inner City and Inner South with 87.5% and 83.3% respectively from just a few listings. Melbourne’s auction market will resume at full pace next weekend with growing numbers of sellers keen to take advantage of continued strong buyer competition for homes and sharply rising prices.
Latest ABS CPI data revealed continuing low inflation although the Reserve Bank is likely to leave official interest rates on hold at its monthly meeting this week.
Dr Andrew Wilson is the Chief Economist of My Housing Market
