Home auction market spring activity continues to build, with most capital cities recording strengthening conditions over October, according to Domain Group chief economist Dr. Andrew Wilson.
Sydney, Melbourne, Adelaide, and Canberra each recorded robust mid-spring clearance rates with most results higher than the levels reported last month. With the exception of Brisbane, results were also considerably higher than those reported in October last year.
RBA’s interest rate cuts this year have fueled increased buyer activity, with returning investors driving spring clearance rates in most housing markets.
On the other hand, though spring clearance rates continue to rise, auction numbers in Sydney and Melbourne are well below the levels recorded over the same period last year.
“Strong buyer momentum and fewer property choices will continue to fuel heady auction market activity through the remainder of spring despite the Reserve Bank deciding to again leave interest rates on hold over November,” Wilson said.
Auction clearance rates in the Harbour City have again increased sharply over October, rising to 77.4% compared to 75.4% reported over September. Rates remain well ahead of the results recorded in October 2015.
Listings remain well below the levels recorded over the same period in 2015. October reported average weekend listings of 594. Although this was higher than August’s 589 average, it was well below the 810 recorded over October last year.
Over the first 10 months of this year, 8,206 fewer auctions have been listed in Sydney—a fall of 25.8% compared to the same period last year. The city’s median auction price fell slightly from $1,280,000 over September to $1,260,000 over October, and was significantly higher than the median auction price reported over the same period last year.
The city’s auction market reported another increase in auction activity over October. Clearance rates rose from 75.8% over September to 76.3% last month. This was also well ahead of the 69% recorded over October 2015.
Average weekend auction volumes fell over the month, from 800 to 706, and remained well below the 862 averaged over October 2015.
Melbourne’s auction numbers have fallen by 10.9% this year. This is 3,478 fewer listings than the 31,930 listed over the same period last year. Median auction price increased from $815,000 over September to $858,000 over October, and was slightly higher than the $800,000 reported over October 2015.
Auction clearance rates have increased over October, rising sharply from 73.6% to 74.1%—placing it well ahead of the 65.5% recorded over October 2015.
Meanwhile, auction volumes in Canberra fell over the month, down from a weekend average of 56 to 47, and also below the 50 averaged over October 2015. The city’s median auction price increased sharply over October, up from $670,000 over September to $710,000, which is much higher than the $690,000 recorded over October last year.
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