Clearance rates still low over the weekend due to high supply
With auction listings still far higher than usual at this time of year the clearance rate over the weekend have continued to be on the low side. In Sydney 1,028 listings resulted in clearance of 70.5 per cent and the first time since 2012 that there has been a four week period of sub-75 per cent rates. In Melbourne there were 1,456 properties for sale but while clearance was just 70.1 per cent it was an improvement on the previous two weeks when rates had been in the 60s. RD Data says that Canberra cleared 62.1 per cent, Adelaide 68 per cent, Perth 38 per cent and Brisbane 35.2 per cent. After next weekend it’s expected that listings will fall back to just a few hundred in each city.
It’s still a buyers’ market in most of Australia
With the exception of just two major cities Australia’s housing market is dominated by buyers. The updated Home Buyers Index from the Commonwealth Bank and CoreLogic RP Data shows that in Sydney and Melbourne sellers hold the power while elsewhere it’s with those buying a home. Buyers in Tasmania are in the strongest position while Queensland and the Northern Territory are also better for those looking to buy. Victoria has flipped from a buyers’ market in July to favour sellers in October 2014.
Construction demand slows in November
Demand for construction dropped back in November according to the Australian Industry Group/Housing Industry Association Australian Performance of Construction Index. The latest figures showed that the industry was in contraction after declines in activity and new orders. Although the housing part of the industry continued to grow, the level of growth was at its slowest pace since March. There was a decline in new orders for apartments for the second month in a row. Julie Toth, chief economist from the AI Group commented: “While one month’s data does not necessarily indicate a new trend, this slower pace of building activity was also reflected in slightly lower building approvals for detached houses in October and September and in the latest GDP estimates for Q3 for Australia. These data really underscore the fragile and sporadic nature of the current recovery in residential housing activity, especially as we move into the end of year shut-down period for much of the industry.”