Auction markets softened a little for the third week in a row, with the preliminary clearance rate coming in at 76.2% compared to 76.8% last week.
Despite this downward trend, the auction rate is still significantly higher than the 67.2% clearance rate at the same time last year.
Weekly clearance rate, combined capital cities
[1]Source: CoreLogic RP Data
Melbourne
Melbourne’s auction market remains relatively stable, with this week’s preliminary clearance rate of 78.2% just shy of last week’s 78.6%.
According to CoreLogic RP Data, the best performing sub region was the Outer East – the only region with a clearance rate over 90% – at 95.6%.
Australian Property Monitors (APM) recorded a median selling price of $655,000 across 433 reported auctions.
The most expensive property was a four-bedroom penthouse just metres from Sandringham beach, which went for $3.3 million.
[2]
Source: Domain
Sydney
Sydney’s auction clearance rate was 81.0% this week compared to last week’s result of 82.0%, and 75.6% at the same time last year.
CoreLogic RP Data notes that of the six auctions reported across the Outer West and Blue Mountains region, all properties were sold. The next best performing sub-region was the Inner West, with a preliminary clearance rate of 90.1%.
APM recorded a median selling price of $972,500 across 472 reported auctions.
The power of selling at auction carried the winning bid of Sydney’s most expensive property to $4.45 million. This Chiswick property is a three-bedroom house, which looks over Five Dock Bay and the city skyline.
[3]Source: Domain
Forget about bubble territory
If you’re worried about downward trends and slipping property prices in the near future, take solace in the assessment of Charles Tarbey, Chairman at Century 21 Australia.
Tarbey told Switzer Home Loans that current housing supply and interest rate levels, which have a strong impact on the Australian housing market, will keep prices from tumbling [4].
“Some commentators have recently argued that there is a large amount of housing supply in the planning stage. This may be the case and housing supply may be due to pick up in the future, but that does not help the problem of short supply that is currently being experienced in many areas,” he says.
“There is a substantial difference between houses to be sold in the future, and houses that are for sale right now.”
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